By Admin 
Adani Total Gas: Amidst the war between Iran and Israel, a big news is coming for the general public of the country. Actually, Adani Total Gas Limited (ATGL) has not increased the prices of CNG and piped gas (PNG) supplied to homes. However, in view of the impact on gas supply due to the growing crisis in West Asia, the increased quantity of gas supplied to some big industrial consumers has been reduced.
A company official said that about 70 percent of ATGL’s gas is supplied from domestic sources, which is supplied to vehicles running using CNG and piped gas (PNG) used in home kitchens. In such a situation, it is a matter of relief that the expenses of vehicle owners and households in this segment will not increase.
Who will be affected?
ATGL is a joint venture between Adani Group and French energy company TotalEnergies. Apart from 70 percent, the remaining 30 percent of the company’s supply comes from imported LNG. It is supplied to commercial and industrial users. Currently, since the Strait of Hormuz has been closed due to war, even though domestic gas is becoming cheaper, the company has to buy this 30 percent share from the international spot market at higher prices. In such a situation, due to disruption in the imported fuel segment, commercial and industrial customers have been asked to reduce consumption by 40 percent of their contracted volume.
Limit set for companies
For industrial users who use gas more than the 40 percent limit, prices have been increased by almost three times. This rate has increased from Rs 40 per standard cubic meter to Rs 119 SCM. Companies will continue to be billed at their contracted rates, giving them the flexibility to shift to another fuel source if needed.
The spot price is high because the company has had to turn to other expensive sources to fill the shortage in the supply of LNG. Currently the spot price is $ 24-25 per mmBtu, whereas earlier it was around $ 10 per mmBtu (million metric British thermal units). In such a situation, the company is forced to increase prices for more than 40 percent usage.
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