Adani Total Gas Limited Cuts Natural Gas Prices for Industrial Users Amid Supply Disruptions

Adani Total Gas Limited Cuts Natural Gas Prices for Industrial Users Amid Supply Disruptions

Adani Total Gas Limited, a joint venture between the Adani Group and France-based TotalEnergies, has reduced the price of excess natural gas supplied to certain industrial consumers. The price cut follows a decline in upstream gas costs and is intended to pass on the benefit to customers despite ongoing supply challenges.

Revised Price for Industrial Gas Supply

The company announced that from March 16, 2026, the price of excess natural gas for industrial customers has been reduced from ₹119.90 per standard cubic metre (SCM) to ₹82.95 per SCM.

This adjustment reflects lower upstream gas prices, even as the market faces supply disruptions due to global geopolitical tensions.

Supply Challenges Linked to Global Shipping Disruptions

Gas supply constraints have intensified due to interruptions in liquefied natural gas (LNG) shipments passing through the Strait of Hormuz, a key global energy transit route.

These disruptions have affected the availability of imported gas, prompting the company to manage supplies more carefully across different customer segments.

Consumption Limits for Industrial Customers

In response to the supply uncertainty, Adani Total Gas Limited had earlier requested its commercial and industrial clients to restrict their gas usage to 40% of their contracted volumes.

The revised price applies only to consumption exceeding this designated threshold, while the company continues to manage distribution to ensure stable supply to priority sectors.

No Change in Prices for PNG and CNG Users

The company confirmed that pricing for domestic piped natural gas (PNG) and compressed natural gas (CNG) remains unchanged.

Around 70% of the company’s gas supply is allocated to residential PNG users and CNG fuel supply, which largely rely on domestically sourced gas and have not experienced pricing revisions.

Market Adjustments Amid West Asia Crisis

The pricing revision also reflects broader adjustments in the energy market amid geopolitical tensions in West Asia.

Authorities in India have taken steps to prioritise gas availability for essential services and household consumption. Approximately 30% of the company’s gas supply is imported, and this portion is mainly used by the industrial sector, making it more vulnerable to international price fluctuations and supply disruptions.

Summary

Adani Total Gas Limited has reduced the price of excess natural gas for industrial customers from ₹119.90 to ₹82.95 per SCM, effective March 16, 2026. The move follows a decline in upstream gas prices even as LNG supply disruptions linked to the Strait of Hormuz continue to affect imports. While industrial users face consumption limits due to supply constraints, prices for domestic PNG and CNG consumers remain unchanged, as the majority of the company’s gas supply is prioritised for residential and transportation needs.

Disclaimer:
This article is based on publicly available information, official statements, and media reports available at the time of publication. The content is intended solely for informational and journalistic purposes.

While efforts have been made to ensure accuracy, NoCap Times does not independently verify all claims, statements, or allegations made by individuals, witnesses, or investigative sources mentioned in the report.

As investigations are ongoing, certain details may change as authorities release further updates. Readers are advised to treat the information as part of a developing news story. NoCap Times shall not be held responsible for any inaccuracies, omissions, or changes that may arise as new verified information becomes available.

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