PNG consumption drops by 90 percent in Morbi as propane availability increases

According to a DeshGujarat report, Morbi, considered India's largest ceramic manufacturing hub, has registered a massive drop of nearly 90 percent in Piped Natural Gas (PNG) consumption over the last five months. At one time, during the gas scarcity created due to the Iran war, the consumption of PNG had reached up to 8.5 million standard cubic meters per day (mmscmd), which has now come down to 1 mmscmd.

The main reason for this drop is the improved availability of propane. With the supply of propane becoming easily available from countries like the USA and Venezuela since the month of July, ceramic units have restarted using this alternative fuel. Currently, the consumption of propane in Morbi is equivalent to 5.3 to 5.4 mmscmd of natural gas. The average gas supply in the first quarter of the current financial year was 5.67 mmscmd, which dropped to 3 mmscmd in the second quarter. Before disruptions occurred in the supply in the month of February, this figure was 2.5 mmscmd.

This situation has become challenging for Gujarat Energy as industrial customers are turning towards propane. The company is now focusing on strengthening its long-term Liquefied Natural Gas (LNG) sourcing portfolio to regain its market share, so that more competitive prices can be offered to customers.