Ahmedabad, March 6 Adani Total Gas Ltd (ATGL) has not increased the prices of CNG for vehicles and piped cooking gas supplied to household kitchens, despite gas supplies being hit due to the Iran war, company officials said on Friday.
An ATGL official said about 70 per cent of ATGL's gas volumes are sourced domestically and supplied to retail CNG fuel stations for vehicles and as piped natural gas for cooking to household kitchens. Prices for these two consumer categories remain unchanged. However, there has been some reduction in the gas supply to large industrial users as imports of natural gas have been hit due to the blocking of the Strait of Hormuz amid the escalating conflict in the Middle East.
ATGL, which is a joint venture of the Adani Group and French energy giant TotalEnergies, imports around 30 per cent of its gas volumes as LNG. This is supplied to commercial and industrial users.
Due to supply chain disruptions in the wake of the Iran war, commercial and industrial customers have been asked to curtail consumption to 40 per cent of their contracted volumes, the official said.
The Iran war and its spillover to the rest of the Gulf countries has resulted in the ship movement coming to a standstill through the Strait of Hormuz which provides the outlet to the Arabian Sea. Besides, Qatar a major exporter of LNG has poised shipments after Iran fired missiles into the country targeting US bases.
About 20 per cent of the world’s oil and gas exports pass through the Strait of Hormuz as a result of which any choking of ships hits supply in the global market, leading to an escalation in prices.
ATGL customers will continue to be billed at their contracted rates for consumption up to the 40 per cent limit, the official said. Any purchases above this volume have to be made at the spot market price.
The company said it is making all possible efforts to ensure uninterrupted gas supplies while managing supply challenges and protecting consumer interests across segments.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor