Morbi Ceramic Industry Cuts PNG Consumption as Propane Availability Improves

Morbi: Gujarat Energy’s piped natural gas (PNG) sales to Morbi, India’s largest ceramic manufacturing cluster, have plunged nearly 90% in five months to around 1 million standard cubic metres per day (mmscmd), from a peak of 8.5 mmscmd during the supply disruption triggered by the Iran war. Improved propane availability has encouraged manufacturers to switch back to the alternative fuel.

The decline highlights the challenge facing the city gas distributor in retaining industrial customers as propane becomes increasingly competitive. Gujarat Energy is looking to strengthen its long-term liquefied natural gas (LNG) sourcing portfolio to offer more competitive prices and regain market share in Morbi.

Gas supplies to Morbi averaged 5.67 mmscmd in the first quarter of FY27 before declining to around 3 mmscmd in the second quarter. Before the supply disruption in February, volumes stood at 2.5 mmscmd.

Gas supplies peaked at 8-8.5 mmscmd in May and June as ceramic manufacturers shifted to natural gas amid a propane shortage. However, propane availability has improved since July, with manufacturers sourcing supplies from countries including the US and Venezuela.

Gujarat Energy said natural gas consumption in Morbi currently stood at around 1 mmscmd, while propane consumption was equivalent to 5.3-5.4 mmscmd of natural gas. DeshGujarat