Archive · 24 Nov 2025
Gujarat Gas Expands to Recover Morbi Losses
Gujarat Gas Ltd, a big city gas company, is trying to make up for losses in its main business in Morbi by expanding into new areas like Ahmedabad Rural, DNH, and Thane.
They plan to increase sales by 2–3 lakh SCMD over the next year and a half.
To stay competitive, they lowered gas prices by ₹3.25/SCM starting August 1, 2025.
They are also focusing on propane as a temporary solution to keep industrial customers who switched due to high LNG prices.
The company believes that global LNG prices will stabilize by the end of 2027, making natural gas more attractive again.
In the meantime, they are working on bringing back customers who left for propane and are expanding their steel pipeline network to reach new industrial clusters.
Gujarat Gas Ltd is expanding into new industrial hubs like Ahmedabad Rural, DNH, and Thane to offset losses in Morbi.
The company expects to increase sales by 2–3 lakh SCMD over the next 18 months.
Industrial gas tariffs have been reduced by ₹3.25/SCM effective August 1, 2025.
Gujarat Gas is using propane as a bridge fuel to retain industrial customers who switched due to high LNG prices.
The company believes global LNG prices will stabilize by the end of 2027, making natural gas more attractive again.
- Who
- Gujarat Gas Ltd (GGL)
- What
- Expansion into new industrial hubs and propane strategy to recover Morbi losses
- When
- Expected sales increase over the next 18 months, price reduction effective August 1, 2025
- Where
- Ahmedabad Rural, Dadra and Nagar Haveli (DNH), Thane, Morbi
- Why
- To offset slump in core Morbi-ceramics-business and retain industrial customers
- Company
- Gujarat Gas Ltd (GGL)
- Core Business
- City gas distribution
- New Markets
- Ahmedabad Rural, Dadra and Nagar Haveli (DNH), Thane
- Expected Sales Increase
- 2–3 lakh SCMD over 18 months
- Price Reduction
- ₹3.25/SCM effective August 1, 2025
- Propane Strategy
- Bridge fuel to retain industrial customers
- LNG Supply Tightness
- Expected to persist for 18–24 months
- FY 2024-25 Sales
- 9.62 MMSCMD (5.03 MMSCMD industrial PNG)
- Q2 FY26 Morbi Sales
- 2.13 MMSCMD (down from 2.51 MMSCMD in Q1)
- Q2 FY26 Non-Morbi Sales
- 2.22 MMSCMD