More Stories

Informist, Friday, Jun 12, 2026

 

Please click here to read all liners published on this story

--Gujarat Gas official: Gas sales to Morbi units hit 8.5 mscmd, highest ever
--Gujarat Gas official: Selling 8.5 mscmd gas to Morbi units since mid-May
--Gujarat Gas official: See gas sales to Morbi units stay high for Jul, Aug
--Gujarat Gas official: Selling total 14.5 mscmd of gas now
--Gujarat Gas official: Selling 10.5 mscmd to industry
--Gujarat Gas official: Gas sales for CNG, piped gas users at 4 mscmd now

 

By Sunil Raghu

 

AHMEDABAD – Gujarat Gas Ltd. reached its highest ever sales volumes of 8.5 million standard cubic metres per day natural gas to tile manufacturing units in Morbi since mid-May, two senior company officials told Informist. This is higher-than-expected target of 7.5 mscmd and despite having seen the sales hitting nil early March in the aftermath of military conflict in the key supply hub for India energy basket of West Asia region.

 

"This is in fact highest-ever sales of natural gas to tile making units in Morbi. This has never been achieved earlier and we hope to maintain sales at these levels for the months of July and August too," a senior Gujarat energy department official said.

 

The company was selling less than 2 mscmd of natural gas to ceramic tile makers of Morbi before Feb. 28, the day military conflict in West Asia began. Gujarat Gas issued force majeure notices to its industrial customers on Mar. 4, saying that the daily contracted quantity would be restricted from Mar. 6. Such notices are generally issued when the contractual counterparty is unable to adhere to the conditions of the signed contract due to unforeseen circumstances.

 

Gujarat Gas later signed a one-year minimum guarantee offtake Obligation contract, or MGO contract, for natural gas supply with nearly 700 tile makers of Morbi, with dynamic pricing. The pricing for every unit is fixed on monthly basis, with average natural gas price currently at INR 73 per standard cubic metre. Morbi, with over 2,500-3,000 tile making units is considered one of the key hubs for this business in the country.

 

"What has also helped increase the volume sales for natural gas here is non-availability of alternative fuel propane, which government of India has asked suppliers to divert to critical areas of economy in the wake of high global crude oil prices," the official said. "Only one ship of propane, about 30,000 tonnes has made it to Morbi since Feb 28."

 

The tile makers too had shut shop for over a month to cope with no availability of propane and Gujarat Gas, declaring force majeure. The other official said that with Morbi factories shut for over a month, the tile makers saw their inventory vanish. "They also had huge orders from US, Europe, Africa and even West Asia, as many of these markets had moved away from China to source their building materials. This has seen the tile makers work overtime and demand for natural gas has jumped," he added.

 

In fact, other than to Morbi, the company is selling 2 mscmd of industrial gas to other parts of Gujarat and 4 mscmd of natural gas to piped gas and compressed natural gas users in multiple states the company is present in. "Overall, we are selling nearly 14.5 mscmd of natural gas currently, another high for the company," the official said.

 

Talking of sourcing, the official said that Gujarat Energy gets nearly 3 mscmd of natural gas through domestic administered price mechanism and new well gas, with rest being imported in form of liquefied natural gas. "The average cost of LNG off-late has been $18 per million British thermal unit equivalent, or about INR 72 per standard cubic metres," the official said.

 

For the March quarter, the company had reported net profit of INR 5.21 billion on revenue of INR 59.76 billion. At 1443 IST, the company's shares traded at INR 383.45 on the National Stock Exchange, up 1.8%. End

 

US$1 = INR 95.02

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.