Adani Total Gas Ltd (ATGL) has confirmed that they have not raised prices for CNG used in vehicles and piped cooking gas for households, despite disruptions in gas supplies due to the Iran war. Approximately 70% of ATGL’s gas comes from domestic sources and is distributed to retail CNG stations and households for cooking, with prices remaining stable for these consumers. However, there has been a decrease in gas supply to large industrial users as imports have been impacted by the conflict in the Middle East, particularly the blocking of the Strait of Hormuz.
ATGL, a joint venture between the Adani Group and TotalEnergies, imports about 30% of its gas as LNG, which is primarily supplied to commercial and industrial customers. These customers have been requested to limit their gas consumption to 40% of their contracted volumes due to disruptions in the supply chain caused by the Iran war.
The ongoing conflict in Iran and its effects on the Gulf region have halted ship movements through the critical Strait of Hormuz, a key route to the Arabian Sea. Additionally, Qatar, a significant LNG exporter, has suspended shipments following missile attacks by Iran on US bases in the country. The blockage of the Strait of Hormuz, through which a substantial portion of global oil and gas exports pass, has led to supply disruptions, resulting in price hikes in the global market.
ATGL customers will be billed at contracted rates for consumption up to the 40% limit, with any additional purchases beyond this threshold subject to spot market prices. The company is committed to ensuring uninterrupted gas supplies while addressing supply challenges and safeguarding consumer interests across all sectors.
