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 approximately 70 per cent of ATGL's gas volume is sourced domestically and supplied to CNG users and domestic kitchens (known as piped natural gas (PNG)-domestic) customers. 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 approximately 30 per cent of gas volume through imported LNG. This is supplied to commercial and industrial users.
As the escalating war has 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 affected.
Due to supply chain disruptions linked to the West Asia crisis, commercial and industrial customers have been asked to reduce their 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 the flexibility to switch to alternative fuel sources if needed.
The average contracted price is approximately Rs 40 per standard cubic meter.
Spot market rates will only apply to consumption beyond this limit, the official added.
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.
For commercial and industrial users consuming gas beyond the 40 per cent limit, an additional charge of Rs 119 per cubic meter (scm) will be applied to the incremental volumes.
The company added that it is making all possible efforts to ensure uninterrupted gas supplies while managing supply challenges and protecting consumer interests across segments.
