Ahmedabad — Gujarat Gas Ltd announced today that it’s implementing restrictions on gas supply to industrial customers, effective March 6. This decision stems from a significant drop in the availability of re-gasified liquefied natural gas (R-LNG), a situation worsened by ongoing conflicts in the Middle East.
In a regulatory filing, the company stated that acts of war have severely impacted LNG supplies, prompting them to issue force majeure notices under their gas supply agreements. Consequently, daily contracted gas quantities for industries will be curtailed.
The firm clarified that its insurance doesn’t cover war-related disruptions, meaning this event qualifies as force majeure. They emphasized that the full extent of the impact is still unfolding and they’re closely monitoring developments.
The backdrop of this crisis involves escalating hostilities in the Middle East. Recently, QatarEnergy paused production at its Ras Laffan LNG facility due to drone attacks and declared force majeure on certain shipments. Additionally, tanker traffic through the vital Strait of Hormuz has faced disruptions, leading to surging global energy prices.
India relies heavily on Qatar for its LNG imports—nearly 40% of the total annual volume of about 27 million tonnes. Petronet LNG, India’s largest importer, has followed suit by issuing force majeure notices to suppliers and domestic buyers alike after several tankers failed to reach Ras Laffan.
Industries across Gujarat are already feeling the pinch. Many sectors reliant on piped natural gas—including ceramics and textiles—are experiencing supply reductions averaging around 50%. For instance, in Ahmedabad’s Vatva estate, chemical units now receive only about 40% of their contracted volumes.
Surat’s industrial sector isn’t exempt either; local manufacturers are voicing concerns over potential shutdowns and rising costs due to limited natural gas availability. With over one lakh cubic metres supplied daily in Surat alone, these restrictions pose serious challenges for manufacturing operations throughout Gujarat.