Located in its official areas in Morbi and Surendranagar districts Ceramic will invite Expressions of Interest ( EOI) from customers

India’s top City Gas Distribution (CGD) Gujarat Gas Limited (GGL) is making rapid progress in CGD areas by launching a customer-centric campaign. GGL made a strategic transformation in the industrial segment with a customer-centric vision focusing on customer convenience, awareness, quick response and automation of all processes. is So that existing market entrants can increase engagement with customers. GGL strives to dominate the energy transition, contributing to a greener and sustainable future with a focus on sustainability.

The share of natural gas in India’s energy mix is targeted to increase from 6.5 per cent to 15 per cent by 2030. So India is giving priority to reducing carbon emissions. GGL is aggressively promoting the use of natural gas in various customer segments through various initiatives. Which will help in significantly reducing the carbon emissions in India besides promoting the consumption of natural gas.

Among the top ceramic producers in the world is the ceramic cluster of Morbi and Surendranagar districts, which account for 90 per cent of India’s ceramic products market. Natural gas continues to be one of the preferred fuels for ceramic customers due to its inherent advantages of being environmentally friendly, uninterrupted supply through pipeline networks, no logistics required, etc. GGL’s pipeline network is connected to almost all ceramic customers located in its jurisdiction in Morbi and Surendranagar districts.

Fuel costs typically account for ~30% of the final manufacturing cost of ceramic products and hence a reasonable estimate for fuel (ie natural gas) costs to avoid any major challenges for manufacturers.

To provide clarity to consumers on the price of natural gas, GGL will invite Expressions of Interest (EOI) from ceramic consumers in the Morbi and Surendranagar areas. The customers will be asked to specify the quantity of natural gas for a specified period. GGL will provide relevant information like the price of natural gas, duration of the contract etc. which will help the customers to decide the quantity.

The arrangement is expected to be a mutually beneficial proposition for consumers and GGL. Currently, GGL supplies more than 4mmscmd of natural gas to ceramic customers in Morbi and Surendranagar area and GGL expects to add 3mmscmd volume with this EoI.

Through this EoI, GGL will offer natural gas at a very competitive price compared to alternative fuels (such as propane). The proposed pricing mechanism includes propane price ( NG equivalent) plus Rs. 50 per cubic meter should be. Under the proposed pricing mechanism, natural gas prices could be lower than alternative fuels. That will limit the risk on the upside. Additionally, apart from cost competitiveness, the use of natural gas will free up the hassle of managing supply logistics associated with alternative fuels. Hence, this EoI is expected to benefit from one of the largest ceramic clusters in the world enabling them to compete globally.

This EoI once again redefines GGL’s dedication to providing customer-centric solutions to one of the major industrial clusters in India. This initiative will boost Gujarat’s ceramic industry.

About Gujarat Gas Limited:

Gujarat Gas Limited is India’s leading urban gas distribution company. It operates in 44 districts of six states including Dadra and Nagar Haveli besides Gujarat, Maharashtra, Rajasthan, Haryana, Punjab and Madhya Pradesh. The company has a successful track record of providing uninterrupted supply of natural gas for over 3 decades through a network of over 38,000 km of gas pipelines. The company operates over 800 CNG stations and has connected over 20.5 lakh households, over 14,900 commercial customers and over 4,300 industrial customers.