Shares of Adani Total Gas rose by 20% to hit the upper circuit on Wednesday as India grapples with a deepening natural gas supply shortage. The surge followed the company’s announcement that domestic piped natural gas (PNG) and compressed natural gas (CNG) for transport have been given priority allocation by the Indian Government.
This increase in stock value was accompanied by significant trading activity, with trading volumes spiking over 20 times. A total of 16.44 million shares were traded on the National Stock Exchange of India and the BSE. Adani Total Gas operates in the city gas distribution sector, providing natural gas to domestic, commercial, industrial, and vehicle users.
Other gas-related stocks also saw an upsurge during intra-day trading despite a general market downturn. Gujarat Gas saw a nearly 12% increase to Rs 420 and closed 3.96% higher at Rs 390. Companies like Petronet LNG, GAIL (India), Indraprastha Gas (IGL), and Mahanagar Gas (MGL) also experienced buying interest during the session, with gains of up to 2%.
Adani Total Gas, in addition to its primary operations, is exploring various opportunities in sectors such as bio-gas, bio-fuel, biomass, liquefied compressed natural gas, hydrogen-enriched compressed natural gas, electric vehicles, and hydrogen-related ventures. The company highlighted in a regulatory filing that escalating geopolitical tensions in the Middle East have led to reduced gas supplies from some of its suppliers, impacting its ability to serve certain industrial clients.
Acknowledging the government’s swift response in issuing the order and prioritizing gas supply for domestic PNG and CNG users, as well as for industrial and commercial clients, Adani Total Gas expressed appreciation. The company stated, “The Company appreciates the Government’s prompt efforts in bringing out the said order and according priority for the gas supplies to Domestic PNG and CNG customers, as well as supply of PNG to Industrial and Commercial Customers.”
