Adani Total Gas keeps CNG, domestic PNG prices unchanged; curbs supply for few industries

Adani Total Gas Ltd (ATGL) has kept the prices of compressed natural gas (CNG) and piped natural gas (PNG) supplied to households unchanged even as it has imposed supply curbs on certain commercial and industrial consumers due to disruptions caused by the escalating crisis in West Asia.

According to company officials, nearly 70 percent of ATGL’s gas volumes are sourced domestically and supplied primarily to CNG users and domestic PNG customers. Prices for these segments, which include vehicle owners and residential households, remain unchanged despite the ongoing supply challenges.

Adani Total Gas, a city gas distribution joint venture between the Adani Group and French energy major TotalEnergies, sources the remaining 30 percent of its gas volumes through imported liquefied natural gas (LNG). This portion is mainly supplied to commercial and industrial customers.

However, the ongoing conflict in West Asia has disrupted global energy supply chains. The situation has particularly impacted shipments moving through the Strait of Hormuz, a key maritime route through which India receives a significant portion of its crude oil and LNG supplies. The disruption has affected the availability of imported LNG for industrial and commercial use.

In response to the supply constraints, ATGL has asked its commercial and industrial customers to limit their gas consumption to 40 percent of their contracted volumes. Officials said customers will continue to be billed at their contracted rates for consumption within the 40 percent limit.

This arrangement provides flexibility for industries to switch to alternative fuel sources if necessary. The average contracted price currently stands at around Rs 40 per standard cubic meter (scm). However, if customers consume gas beyond the 40 percent threshold, the additional volumes will be billed at spot market rates.

Spot market prices have surged significantly due to the supply disruption. LNG spot rates are currently around USD 24–25 per million British thermal units (mmBtu), compared to about USD 10 per mmBtu during normal market conditions.

For industrial and commercial users exceeding the permitted limit, ATGL will charge Rs 119 per scm for the incremental gas consumption. The company said it is making all possible efforts to ensure uninterrupted supply to priority segments while managing the supply challenges caused by the ongoing crisis and protecting consumer interests across categories.