Adani Total Gas Limited (ATGL) has decided to keep prices of compressed natural gas (CNG) and piped natural gas supplied to households unchanged, even as it restricts gas supply to certain commercial and industrial consumers due to disruptions in global energy supply chains.
The company, a joint venture between Adani Group and France’s TotalEnergies, sources about 70% of its gas domestically, which is mainly supplied to CNG vehicle users and residential piped natural gas (PNG) customers. Prices for these segments remain stable despite ongoing geopolitical tensions.
However, around 30% of ATGL’s gas supply comes from imported liquefied natural gas (LNG), primarily used by commercial and industrial consumers. The escalating conflict in West Asia has disrupted LNG shipments, particularly through the critical shipping route of the Strait of Hormuz, a key corridor for global oil and gas trade.
As a result, the company has asked commercial and industrial customers to reduce gas consumption to 40% of their contracted volumes. Customers will continue to pay their contracted rate, around ₹40 per standard cubic metre (scm), for gas used within this limit.
If consumption exceeds this threshold, the additional volume will be charged at spot market rates of about ₹119 per scm, reflecting the higher cost of sourcing gas from alternative markets. Spot LNG prices have surged to $24–25 per million British thermal units (mmBtu) compared with about $10 per mmBtu earlier.
ATGL said it is working to maintain uninterrupted supplies for priority segments such as households and transport while managing the ongoing supply challenges in global energy markets.
