Archive · 10 Aug 2025
Gujarat Gas to Sell Propane Gas to Ceramic Cluster in Morbi
Gujarat Gas, a company that provides natural gas, is starting to sell propane gas too.
They'll first sell it to factories that make ceramics in Morbi, India.
These factories have been using cheaper propane instead of gas.
Gujarat Gas wants to buy propane at a lower price from other countries and sell it to these factories.
They hope to capture a big chunk of the propane market in Morbi.
They're aiming to become the main energy supplier for these factories, so they don't need to switch between different suppliers.
Natural gas sales in Morbi have decreased, and the company is looking to expand propane sales.
The demand for natural gas in Morbi is expected to stay low due to festivals and economic conditions.
Gujarat Gas Ltd will begin sourcing and selling propane gas to industrial customers.
The company will initially target ceramic units in Morbi, Gujarat, which are increasingly using propane.
Gujarat Gas aims to capture 25% of the propane market in Morbi by selling an estimated 1.3 mmscmd.
PNG prices in Morbi are higher than propane prices, causing a shift in fuel usage.
The company plans to import propane at lower prices and become a total energy solutions provider.
- Who
- Gujarat Gas Ltd, a City Gas Distribution company.
- What
- Gujarat Gas is entering the propane gas market, targeting industrial customers.
- When
- The company's board approved the move in the first quarter of FY2026, published on August 10, 2025.
- Where
- The focus is on Morbi, Gujarat, India.
- Why
- To become a total energy solutions provider and capture a portion of the propane market due to higher prices of PNG.
Current Customers
Gujarat Gas
Fuel Cost
Current Customers
Shift to Propane is happening because of the cost differential.
Gujarat Gas
Gujarat Gas can potentially lower costs.
- Company
- Gujarat Gas Ltd
- Target Market
- Ceramic units in Morbi
- Product
- Propane gas
- PNG Price (Morbi)
- ₹44/SCM or ₹1,327/MMBTU
- Propane Price (Morbi)
- ₹40/SCM or ₹1,207/MMBTU
- Propane Market Share Target
- 25%
- Estimated Propane Sales Target
- 1.3 mmscmd