The government has announced a prioritization of gas supply for household PNG and CNG, potentially curtailing supply for industrial users. This decision is expected to significantly impact companies such as Indraprastha Gas Limited (IGL), Gujarat Gas Limited, and Mahanagar Gas Limited.

Gujarat Gas has around 49% of its total volume supplied to industrial and commercial consumers, making it particularly vulnerable to supply disruptions. In contrast, Mahanagar Gas Limited and Indraprastha Gas Limited have 16% and 13% of their total gas distribution allocated to these segments, respectively.

Nomura analysts estimate that a 20% curtailment in gas supply to industrial and commercial segments could impact both MGL and IGL by around 3% on volumes. However, Gujarat Gas is likely to face a much larger impact, estimated at around 10% on volumes due to its higher exposure to the industrial and commercial segment.

In western Uttar Pradesh, the minimum waiting period for booking a domestic LPG cylinder refill in Noida has increased to 25 days from the previous 21 days. This change affects approximately 10 lakh LPG connections in Noida and 12 lakh in Ghaziabad, with around 8,000 connections in Noida and 15,000 in Ghaziabad classified as commercial.

Despite these challenges, the supply of PNG and CNG in the region has continued without interruption. The gas supply network in western Uttar Pradesh is connected to the Hazira-Vijaipur-Jagdishpur pipeline operated by GAIL (India) Limited, ensuring some level of stability in supply.

Authorities have issued directions to ensure that domestic consumers do not face inconvenience in LPG supply, reflecting the government’s commitment to prioritize household needs amidst the ongoing supply challenges.

As the situation develops, observers will be closely monitoring the impacts on IGL and other gas distribution companies. Details remain unconfirmed regarding the full extent of the curtailment’s impact on industrial users.

The post Igl: Impact of Gas Supply Curtailment on and Other Companies appeared first on newsrush.