Adani Total Gas keeps CNG and domestic PNG prices unchanged

New Delhi: Adani Total Gas Ltd (ATGL) has not raised prices of CNG and piped cooking gas supplied to households, even as it has imposed supply curbs on some large industrial consumers amid the escalating West Asia crisis affecting gas supplies, officials said on Friday.

A company official said about 70 per cent of ATGL’s gas volumes are sourced domestically and supplied to CNG users and domestic kitchens (called 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 around 30 per cent of gas volumes through imported LNG. This is supplied to commercial and industrial users.

As the escalating war halted the movement of ships through the Strait of Hormuz - the narrow sealane through which India gets a bulk of its crude oil and LNG supplies - the imported fuel segment has seen disruption.

Due to supply chain disruptions linked to the West Asia crisis, commercial and industrial customers have been asked to curtail 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 flexibility to shift to alternative fuel sources if needed.

The contracted price on average is around Rs 40 per standard cubic meter. The average term contract price across industry is Rs 40 per scm.

Spot market rates will apply only to consumption beyond this threshold, the official added.

The gas supply over 40 per cent of DCQ (daily contracted quantity) is a customer initiative by ATGL to support those customers who need fuel for their business commitments and are not able to source alternative fuels.

The spot price reflects the alternative gas sourcing that the company had to do to fill the imported LNG gap. Spot rates are more than double the peacetime LNG prices - $24-25 per million British thermal unit as compared to $10 per mmBtu previously.

Commercial and industrial users who use gas beyond the 40 per cent limit will be charged Rs 119 per scm (Standard Cubic Meter) on the incremental volumes. The company added that it is making every possible effort to ensure uninterrupted gas supplies while managing supply challenges and protecting consumer interests across segments.