Ahmedabad: Adani Total Gas Limited announced on Sunday that it has reduced the price of excess natural gas supplied to certain industrial customers after upstream gas prices softened amid ongoing supply disruptions linked to the West Asia crisis.
The company said the price of excess gas will be cut to Rs 82.95 per standard cubic metre (SCM) from Rs 119.90 per SCM.
The revised rate will come into effect from 6:00 am on March 16. Adani Total Gas, a city gas distribution joint venture between the Adani Group and France’s TotalEnergies, said the move is aimed at passing on the benefit of lower upstream gas prices to customers while ensuring stable and fair distribution of gas during the current supply constraints.
The company had earlier asked commercial and industrial users to reduce their gas consumption to 40 per cent of their contracted volumes after India’s LNG supplies were disrupted due to the halt in ship movement through the Strait of Hormuz amid the ongoing conflict in West Asia.
Customers using gas beyond this limit were charged spot market rates for the additional volumes.
While the excess gas price has now been reduced, the company said other terms related to excess gas supply remain unchanged.
In a communication to users, the company said the price revision was carried out to reflect the decline in upstream gas prices while maintaining system stability during the ongoing supply disruptions.
It also said it has sought clarification from GAIL (India) Ltd regarding the 80 per cent supply to industrial customers under the existing order.
Earlier this month, the company had decided not to increase the prices of CNG and piped cooking gas supplied to households despite the supply challenges.
Around 70 per cent of the gas supplied by Adani Total Gas is sourced domestically and is used for CNG vehicles and piped natural gas for households.
The remaining nearly 30 per cent is imported LNG, which is mainly supplied to commercial and industrial users.
(IANS)
