Gujarat Gas Limited has reinforced its commitment to the Morbi ceramic manufacturing cluster by ensuring reliable gas supply and stable pricing during a period of global uncertainty that impacted industrial operations across the region. As the authorized supplier of Piped Natural Gas (PNG) in Morbi, the company has built a robust gas distribution network over the years to cater to the cluster’s full demand potential. During the recent geopolitical disruptions, GGL adopted a proactive sourcing strategy by procuring natural gas from markets outside the Middle East at spot rates, aligning with directives issued by the Government of India to maintain uninterrupted supply.
The crisis led to sharp increases in raw material costs, restrictions on industrial propane usage, and rising freight expenses. These challenges resulted in a temporary suspension of operations by several ceramic units in mid-March 2026, impacting the livelihoods of over 200,000 workers in the region.
In response, GGL’s regional and corporate teams worked closely with industry stakeholders, including the Morbi Ceramic Association, to enable a phased restart of operations. The company focused on ensuring consistent gas availability, maintaining competitive and predictable pricing, and meeting required supply volumes.
These measures have contributed to a gradual revival of industrial activity. Gas consumption in the Morbi cluster increased from approximately 0.36 mmscmd, serving around 83 units as of March 31, 2026, to nearly 2.70 mmscmd, supporting about 290 units by April 22, 2026. GGL has also initiated execution of gas supply agreements with ceramic manufacturers, addressing key concerns related to supply continuity and pricing stability.
The number of active gas-consuming units is expected to rise significantly in the coming weeks, with projections indicating 675 to 700 operational units and total gas consumption reaching 6 to 7 mmscmd by May 2026. Backed by its diversified sourcing approach, the company has assured customers of uninterrupted supply along with price certainty for the entire month.
This renewed stability has strengthened industry confidence and is expected to accelerate production across the cluster. The reopening of manufacturing units is also likely to restore employment opportunities for nearly 200,000 workers affected during the temporary shutdown.
In addition to supporting core industrial operations, Gujarat Gas Limited is facilitating PNG connections for employee canteen facilities within manufacturing units, contributing to improved operational infrastructure. Gujarat Gas Limited remains focused on supporting the sustained recovery and long-term growth of the Morbi ceramic industry while navigating current global challenges.
