Adani Total Gas Holds CNG, PNG Prices Amid West Asia Conflict But Cuts Supply To Some Industries
While 70% of gas is domestic, industrial users face supply cuts to 40% due to LNG import issues. Consumption within this limit is at contracted rates (Rs 40/scm), exceeding it incurs spot prices (Rs 119/scm).
New Delhi, Mar 6 (PTI) Adani Total Gas Ltd (ATGL) has not raised prices of CNG and piped cooking gas supplied to households, even as it has imposed supply curbs on some large industrial consumers amid the escalating West Asia crisis affecting gas supplies, officials said on Friday.
A company official said about 70 per cent of ATGL's gas volumes are sourced domestically and supplied to CNG users and domestic kitchens (called piped natural gas (PNG)-domestic) customers. Prices for these segments of vehicle owners and residential households remain unchanged.
ATGL, the city gas joint venture of the Adani Group and French energy major TotalEnergies, sources the remaining around 30 per cent of gas volumes through imported LNG. This is supplied to commercial and industrial users.
As the escalating war halted movement of ships through Strait of Hormuz - the narrow sealane through which India gets a bulk of its crude oil and LNG supplies - the imported fuel segment has seen disruption.
Due to supply chain disruptions linked to the West Asia crisis, commercial and industrial customers have been asked to curtail consumption to 40 per cent of their contracted volumes, the official said.
Customers will continue to be billed at their contracted rates for consumption up to the 40 per cent limit, allowing them flexibility to shift to alternate fuel sources if needed.
The contracted price on an average is around Rs 40 per standard cubic meters.
Spot market rates will apply only to consumption beyond this threshold, the official added.
The spot price reflects the alternate gas sourcing that the company had to do to fill the imported LNG gap. Spot rates are more than double the peace-time LNG prices - USD 24-25 per million British thermal unit as compared to USD 10 per mmBtu previously.
For commercial and industrial users that use gas beyond the 40 per cent limit would be charged Rs 119 per scm (Standard Cubic Meter) on the incremental volumes.
The company added that it is making all possible efforts to ensure uninterrupted gas supplies while managing supply challenges and protecting consumer interests across segments.
(Disclaimer: This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)
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