New Delhi, March 6 Adani Total Gas Ltd (ATGL) has not increased the prices of CNG and piped cooking gas supplied to households, even as it has imposed supply restrictions on some large industrial consumers amid the escalating West Asia crisis affecting gas supplies, officials said on Friday.
A company official said that about 70 per cent of ATGL's gas volumes are sourced domestically and supplied to CNG users and domestic kitchens (known as piped natural gas (PNG)-domestic) customers. The prices for these segments of vehicle owners and residential households remain unchanged.
ATGL, the city gas joint venture of the Adani Group and French energy major TotalEnergies, sources the remaining around 30 per cent of gas volumes through imported LNG. This is supplied to commercial and industrial users.
As the escalating war halted the movement of ships through the Strait of Hormuz – the narrow waterway through which India gets most of its crude oil and LNG supplies – the imported fuel segment has been disrupted.
Due to supply chain disruptions linked to the West Asia crisis, commercial and industrial customers have been asked to curtail consumption to 40 per cent of their contracted volumes, the official said.
Customers will continue to be billed at their contracted rates for consumption up to the 40 per cent limit, allowing them flexibility to switch to alternative fuel sources if needed.
The average contracted price is around Rs 40 per standard cubic meter. The average term contract price across the industry is Rs 40 per scm.
Spot market rates will only apply to consumption beyond this limit, the official added.
The gas supply exceeding 40 per cent of the daily contracted quantity (DCQ) is an initiative by ATGL to support customers who need fuel for their business commitments and are unable to source alternative fuels.
The spot price reflects the alternative gas sourcing that the company had to undertake to fill the gap in imported LNG. Spot rates are more than double the peacetime LNG prices – USD 24-25 per million British thermal unit, compared to USD 10 per mmBtu previously.
Commercial and industrial users who use gas beyond the 40 per cent limit will be charged Rs 119 per scm (Standard Cubic Meter) on the incremental volumes.
The company added that it is making every possible effort to ensure uninterrupted gas supplies while managing supply challenges and protecting consumer interests across all segments.
