Adani Total Gas CNG and PNG prices unchanged as LNG-linked curbs hit some industry users

Adani Total Gas Ltd (ATGL) kept CNG and household piped cooking gas prices unchanged, officials said on Friday. The company still limited supply for some large industrial users. The steps followed the West Asia crisis, which has affected gas supply routes and imported LNG availability.

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ATGL officials said most gas volumes come from domestic sources. About 70 per cent is sourced in India for CNG users and home kitchens. These customers are listed as PNG-domestic users. Officials said prices for vehicle owners and residential households stayed the same.

ATGL gas supply curbs for commercial and industrial customers

ATGL, a joint venture of the Adani Group and TotalEnergies, imports the remaining gas as LNG. This segment is close to 30 per cent of total volumes. Imported LNG mainly serves commercial and industrial users. Officials said these customers faced supply cuts due to disruption in imports.

Officials linked the disruption to the West Asia crisis and shipping constraints. The movement of ships through the Strait of Hormuz was affected. This route is a narrow sea lane used for a large share of India’s crude oil and LNG supplies. As a result, imported fuel deliveries faced delays.

Due to supply chain disruptions, ATGL asked commercial and industrial customers to cut usage. The limit was set at 40 per cent of contracted volumes, an official said. Billing will continue at contracted rates up to that limit. Officials said this gave customers room to shift to alternate fuels.

ATGL pricing for contracted and spot gas beyond limits

The average contracted price is around Rs 40 per standard cubic metre (scm). Officials said spot market rates will apply only above the 40 per cent threshold. ATGL said extra supply above that level was offered on customer request. It aimed to help users unable to arrange alternate fuels.

Officials said spot prices rose due to replacement sourcing of imported LNG. The spot cost was "more than double\" earlier levels. It was USD 24-25 per million British thermal unit, versus USD 10 per mmBtu previously. For volumes beyond the cap, users will pay Rs 119 per scm.

ATGL said it was working to keep supplies running despite constraints. The company said it was managing the supply challenge across customer groups. It also said it aimed to protect consumer interests while handling pressure on imported LNG availability.

With inputs from PTI