Gujarat Gas claims uninterrupted supply helping Morbi units resume operations

By Bashir Pathan* 

Gujarat Gas Limited (GGL), the authorized supplier of Piped Natural Gas (PNG) in Morbi, has stated that it is supporting the revival of the region’s ceramic industry by ensuring uninterrupted gas supply and price stability amid recent geopolitical disruptions.

According to the company, it has developed a comprehensive gas distribution network over the years to meet the full potential demand of the Morbi ceramic cluster. During the recent geopolitical crisis, GGL said it proactively sourced natural gas from non-Middle East markets at spot rates to maintain continuous supply in line with Government of India directives.

The company noted that the crisis led to a surge in raw material costs, restrictions on industrial propane usage, and increased freight expenses, prompting several ceramic units in Morbi to voluntarily suspend operations starting mid-March 2026, affecting the livelihoods of more than two lakh workers.

In response, GGL stated that its GA and corporate teams engaged extensively with industry stakeholders, including the Morbi Ceramic Association, to facilitate the restart of operations. The company said its focus areas included ensuring continuous gas availability, offering competitive and stable pricing, and meeting required supply volumes.

GGL claimed that these efforts have begun to yield results, with industrial activity in Morbi gradually resuming in April 2026. Gas consumption, it said, increased from approximately 0.36 mmscmd (serving around 83 units) as of March 31, 2026, to about 2.70 mmscmd (serving around 290 units) as of April 22, 2026.

The company further stated that it has addressed key industry concerns related to gas availability, pricing, and supply volumes, and has initiated the execution of gas supply agreements with ceramic units. The number of active gas consumers is expected, according to GGL, to rise from the current around 290 units to approximately 675–700 units, with total gas consumption projected to reach 6–7 mmscmd in May 2026.

Leveraging what it described as a diversified sourcing strategy, GGL said it has assured customers of uninterrupted gas supply along with price certainty for the entire month of May 2026. This, the company added, has boosted confidence among manufacturers and is expected to accelerate the revival of production across the cluster.

The company also stated that the resumption of operations is likely to benefit nearly two lakh workers who were impacted by the temporary shutdown of manufacturing units during the crisis.

In addition to supporting industrial production, GGL said it is facilitating PNG connections for employee canteen facilities within manufacturing units, further strengthening the overall ecosystem.

Gujarat Gas Limited maintained that it remains committed to supporting the Morbi ceramic industry and expressed confidence in overcoming current challenges while enabling sustainable, long-term growth.

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*Senior Gujarat-based journalist, formerly with Indian Express