Adani Total Gas Maintains CNG and Cooking Gas Prices Amidst Iran Conflict
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Ahmedabad, March 6 (NationPress) Adani Total Gas Ltd (ATGL) has decided to keep the prices of CNG for vehicles and piped cooking gas for households stable, even as gas supplies face interruptions due to the ongoing conflict in Iran, confirmed company representatives on Friday.
An ATGL spokesperson reported that approximately 70% of ATGL's gas supply is sourced locally, which is distributed to retail CNG stations for vehicles and for domestic cooking needs. The pricing for these two consumer segments remains unchanged. In contrast, there has been a decrease in gas availability for larger industrial clients, as natural gas imports have been disrupted due to the blockade of the Strait of Hormuz amidst rising tensions in the Middle East.
ATGL, a collaboration between the Adani Group and the French energy corporation TotalEnergies, imports roughly 30% of its gas supply as LNG for its commercial and industrial customers.
Due to the supply chain issues stemming from the Iran conflict, industrial and commercial clients have been instructed to limit their consumption to 40% of their agreed volumes, according to the official.
The ongoing conflict in Iran is affecting the entire Gulf region, resulting in a significant halt in ship movements through the Strait of Hormuz, which is a critical passage to the Arabian Sea. Additionally, Qatar, a key LNG exporter, has suspended shipments following missile strikes from Iran targeting US bases in the area.
About 20% of global oil and gas exports traverse the Strait of Hormuz, meaning that any disruption in shipping directly impacts the global supply and can lead to price increases.
ATGL customers will continue to be charged at their contracted rates for consumption up to the 40% limit, noted the official. Any additional gas purchases must be made at the spot market rate.
The company is committed to ensuring uninterrupted gas supplies while navigating these supply challenges and safeguarding the interests of its consumers across various segments.