Adani Total Gas cuts price of excess natural gas for industrial users

Adani Total Gas has lowered the excess gas price to Rs 82.95 per SCM from Rs 119.90, effective March 16. The move reflects softer upstream gas costs while maintaining system stability amid supply disruptions and continued limits on industrial consumption.

Adani Total Gas Ltd (ATGL) has reduced the price of excess natural gas supplied to certain industrial customers to Rs 82.95 per standard cubic metre (SCM) from the earlier Rs 119.90 per SCM. The revised rate will come into effect from 0600 hours on March 16.

The company said the decision was taken after upstream gas prices softened, even as supply disruptions continue to affect the market. ATGL stated that the revision is aimed at passing on the benefit of lower upstream prices to customers while ensuring system stability and equitable distribution of gas during the ongoing supply constraints.

The development comes in the backdrop of disruptions in India's liquefied natural gas (LNG) supplies following the halt in the movement of ships through the Strait of Hormuz due to the conflict in West Asia. As a result, ATGL had earlier asked commercial and industrial consumers to reduce their gas consumption to 40 percent of their contracted volumes.

For any consumption beyond this limit, spot market rates were being applied. The company clarified that rates applicable to this segment remain unchanged. In a communication to customers, ATGL informed that the excess gas price, which was earlier announced on March 3, 2026, has now been revised downward from Rs 119.90 per SCM to Rs 82.95 per SCM with effect from March 16.

The company said the revision was undertaken to pass on the benefit of reduced upstream gas prices while continuing efforts to manage system integrity and maintain fair distribution of gas amid the current supply disruption.

ATGL also said that other conditions related to excess gas provisions remain unchanged. It added that clarification has been sought from GAIL (India) Ltd regarding the supply of 80 percent gas to industrial customers under the existing order.

Earlier this month, the company had decided not to increase the prices of compressed natural gas (CNG) and piped natural gas supplied to domestic households. However, it imposed supply restrictions on some large industrial consumers as the West Asia crisis began impacting gas supplies.

Around 70 percent of ATGL’s gas volumes are sourced domestically and are primarily supplied to CNG users and residential households through piped natural gas connections. Prices for these segments remain unchanged. The remaining approximately 30 percent of the company’s gas supply comes through imported LNG, which is largely supplied to commercial and industrial customers.

Amid the supply disruption caused by the crisis in West Asia, the government revised gas allocation priorities, giving preference to CNG and domestic PNG consumers. The price of imported LNG was pooled for certain users, resulting in lower gas prices that are now being passed on to customers.

Previously, commercial and industrial consumers who exceeded the 40 percent consumption limit were charged Rs 119 per SCM on incremental volumes. ATGL said it continues to make efforts to ensure uninterrupted gas supplies while managing supply challenges and protecting consumer interests across different segments.