Gas Crunch: Gujarat Gas Slashes Industrial Supply by 50%

Gujarat Gas has announced that it will reduce the daily contracted gas supply to its industrial customers from March 6, with supply cuts that could reach up to 50 percent.

The company stated that the ongoing conflict in the Middle East has significantly disrupted the availability of regasified liquefied natural gas (R-LNG), leading to supply constraints. As a result, Gujarat Gas has issued force majeure notices to its industrial customers, invoking a contractual clause that allows companies to temporarily suspend or limit obligations due to circumstances beyond their control. The reduction in daily contracted quantity (DCQ) will take effect starting March 6.

Gujarat State Petroleum Corporation (GSPC), the parent company of Gujarat Gas, sources a large portion of its gas from QatarEnergy and Abu Dhabi National Oil Company. Meanwhile, Petronet LNG, India’s largest LNG importer, has also invoked force majeure with QatarEnergy, affecting domestic buyers such as GAIL (India), Indian Oil Corporation, and Bharat Petroleum Corporation.

News by Rahul Yelligetti.