Amid Global Energy Challenges, 142 Ceramic Units Thrive in Morbi, Gujarat
Synopsis
Key Takeaways
Morbi, April 15 (NationPress) Gujarat Gas Limited (GGL) has intensified its initiatives to ensure a reliable fuel supply for the ceramic sector in Morbi amidst a worldwide energy crisis. Currently, 142 ceramic units are operational, thanks to strategic measures taken to tackle supply challenges and escalating costs.
Officials have indicated that this recovery is a result of collaborative efforts between GGL and the Morbi Ceramic Association, following a period of intense pressure caused by fluctuations in global liquefied natural gas (LNG) markets and supply interruptions linked to geopolitical conflicts earlier this year.
Prior to the crisis that began in February, there were 377 industrial consumers in Morbi utilizing piped natural gas (PNG) from GGL, while approximately 415 units relied on propane supplied by major oil companies like Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL).
The propane-dependent units comprised nearly 70% of total daily fuel consumption, equating to around 5.6 MMSCMD (natural gas equivalent).
GGL reported an increase in supply in early March; however, the global LNG supply disruptions caused by the US-Iran conflict imposed limitations.
In accordance with directives from the central government, the company reduced its supply to about 80% of the average consumption over the past six months.
The combined effect of rising production costs, limited propane availability, and increased freight charges led many ceramic units to voluntarily halt operations starting mid-March.
In response, GGL worked closely with manufacturers to transition from propane to natural gas and arranged for additional supplies despite high international prices.
The company affirmed that it continued its gas distribution in April, adhering to government regulations and procuring sufficient volumes from international markets outside the Middle East at current rates to satisfy industrial demands.
Global LNG prices have remained elevated, ranging from $18 to $20 per MMBtu.
“Despite the ongoing challenges, GGL is committed to supporting Morbi’s ceramic sector. Through mutual trust, we will navigate these obstacles and elevate the industry,” the statement emphasized.
GGL further noted that its teams are in constant communication with industry representatives to address pricing and supply challenges as the sector endeavors to return to normal operations.