Ahmedabad: The ongoing conflict in the Middle East and disruption of global energy routes have begun affecting industries in Gujarat, with Gujarat Gas Ltd announcing restrictions on gas supply to industrial customers from March 6 due to a sharp decline in the availability of re-gasified liquefied natural gas (R-LNG).

In a regulatory filing to the stock exchanges, the company stated that the recent war in the Middle East has severely constrained LNG supplies, forcing it to issue force majeure notices to its industrial customers under gas supply agreements. As a result, the company has restricted the daily contracted gas quantity for industries, effective March 6.

The company clarified that acts of war are not covered under its insurance policies, and therefore the supply disruption has been treated as a force majeure event. Gujarat Gas said the overall impact of the situation is still evolving and cannot be fully estimated at this stage. The company added that it is closely monitoring developments and will update the stock exchanges about any material changes.

Global LNG Disruptions

The supply crisis follows the escalation of hostilities in the Middle East. QatarEnergy has reportedly halted production at its Ras Laffan LNG facility after drone attacks and declared force majeure on certain deliveries. Additionally, tanker movement through the Strait of Hormuz, a critical energy shipping route, has been disrupted, pushing up global energy prices and shipping costs.

India is particularly vulnerable to the disruption, as Qatar accounts for nearly 40% of the country’s LNG imports, which total about 27 million tonnes annually.

India’s largest LNG importer, Petronet LNG, has also issued a force majeure notice to supplier QatarEnergy and to domestic buyers including GAIL (India), Indian Oil Corporation, and Bharat Petroleum Corporation after several LNG tankers were unable to reach the Ras Laffan port in Qatar.

Industries Across Gujarat Hit

The gas supply cut is already impacting several industrial clusters across Gujarat, especially sectors that rely heavily on piped natural gas such as ceramics, chemicals, textiles, and other energy-intensive manufacturing units.

Industry representatives say the supply reduction is around 50% in many areas, affecting production schedules and order deliveries.

In Ahmedabad’s Vatva industrial estate, about 250 chemical units depend on piped natural gas. According to industry sources, supply has been reduced to around 40% of contracted volumes, forcing many units to operate at significantly lower capacity. Additional consumption beyond the reduced quota is reportedly charged at nearly double the standard price, making it economically unviable.

Similarly, industries in the Sanand GIDC area have also been informed that they will receive only about half of their contracted gas supply, which may disrupt production and delay ongoing orders.

Concerns Rise in Surat

Industrial units in Surat, particularly in the chemical, textile, and food-processing sectors, have also expressed concern over the restricted gas supply. Many units depend on natural gas as their primary fuel, and industry leaders warn that prolonged disruptions could lead to partial shutdowns and rising production costs.

Gujarat Gas currently supplies over one lakh cubic metres of gas per day to industrial consumers in Surat, making the restrictions a significant challenge for local manufacturing clusters.

Industry stakeholders say the situation remains uncertain and much will depend on how quickly global LNG supply chains stabilise amid the continuing geopolitical tensions in the Middle East.

What is ‘Force Majeure’?

Force majeure is a legal provision that protects a company from liability when it is unable to fulfil contractual obligations due to extraordinary circumstances beyond its control. By invoking this clause in its gas supply agreements, Gujarat Gas has informed industrial customers that it cannot supply the contracted volumes of gas. The situation is not considered a breach of contract, as it arises from an exceptional event in this case, acts of war which are also not covered under the company’s insurance policies. DeshGujarat