Morbi's Ceramic Industry Shifts to Natural Gas from Oman and Angola Amid Supply Disruptions
To soften Qatar blow, natural gas reaching Gujarat from Oman, Angola; Morbi single largest consumer
The Indian Express
Image: The Indian Express
Morbi, Gujarat's ceramic manufacturers are transitioning to piped natural gas (PNG) from Oman and Angola by May 2026, following supply disruptions from Qatar due to geopolitical conflicts. This shift is expected to cover over half of the PNG supply, with 680 out of 792 units signing contracts with Gujarat Gas Ltd.
- 01680 out of 792 ceramic units in Morbi will switch to PNG from Oman and Angola by May 2026.
- 02The transition is a response to supply disruptions caused by conflicts in West Asia.
- 03Gujarat Gas Ltd has reduced the effective price of natural gas for new customers amid rising costs.
- 04Ceramics industry now accounts for 50% of the total PNG demand in the region.
- 05Industrial activity in Morbi is expected to resume significantly with increased gas consumption.
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In Morbi, Gujarat, the ceramic industry is set to transition to piped natural gas (PNG) sourced from Oman and Angola by May 2026, following disruptions in liquefied petroleum gas (LPG) supplies due to ongoing conflicts in West Asia. Currently, 680 out of 792 ceramic units have signed contracts with Gujarat Gas Ltd (GGL) to ensure a stable gas supply. The shift comes after a blockade of the Strait of Hormuz, which affected LPG supplies, leading to the temporary shutdown of many units since mid-March. GGL has proactively sourced natural gas from non-Middle East markets at higher spot rates to maintain supply continuity. The company has also managed to reduce the effective price of natural gas for new customers from ₹93 per cubic metre to ₹77 per cubic metre. The ceramics industry now represents 50% of the total PNG demand, with expectations of increased industrial activity as gas consumption rises. GGL anticipates that PNG prices will stabilize in June, allowing for further purchases from the Morbi ceramics cluster. As industrial operations resume, the number of active gas consumers is projected to increase significantly, indicating a recovery in the region's manufacturing sector.
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The transition to PNG is expected to stabilize the manufacturing sector in Morbi, allowing for the resumption of operations and potentially safeguarding jobs for thousands of workers.
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