Gujarat Gas Backs Morbi Ceramic Revival With Assured Gas Supply
OIL & GAS

Gujarat Gas Backs Morbi Ceramic Revival With Assured Gas Supply

Gujarat Gas has reaffirmed its commitment to the Morbi ceramic industry by ensuring uninterrupted gas supply and price stability amid recent geopolitical disruptions. The company said it sourced natural gas from non-Middle East markets at spot rates to maintain a continuous supply in line with Government of India directives. The crisis had prompted a surge in raw material costs, restrictions on industrial propane use and higher freight expenses, leading several ceramic units in Morbi to suspend operations from mid-March 2026 and affecting more than 0.2 million (0.2 mn) workers.

GGL's geographical area and corporate teams engaged extensively with industry stakeholders, including the Morbi Ceramic Association, to facilitate a phased restart of operations. Focus areas included continuous availability, competitive and stable pricing and the delivery of required supply volumes. The firm has initiated gas supply agreements with ceramic units to address concerns over availability, pricing and volumes and to support operational continuity.

Industrial activity in Morbi began to resume in April 2026, with gas consumption rising from approximately 0.36 mmscmd serving about 83 units on 31 March 2026 to approximately 2.70 mmscmd serving around 290 units on 22 April 2026. GGL expects the number of active gas consumers to increase to roughly 675–700 units and projects total gas consumption of 6–7 mmscmd in May 2026. The company's diversified sourcing strategy underpinned assurances of uninterrupted supply and price certainty for the month of May 2026.

The measures are intended to restore production across the cluster and to help reinstate employment for workers affected by the temporary shutdowns. In addition to industrial supply, GGL is facilitating piped natural gas connections for employee canteens within manufacturing units to strengthen the local ecosystem. The company said it remains committed to supporting the Morbi ceramic industry and to enabling sustainable, long-term growth.

Gujarat Gas has reaffirmed its commitment to the Morbi ceramic industry by ensuring uninterrupted gas supply and price stability amid recent geopolitical disruptions. The company said it sourced natural gas from non-Middle East markets at spot rates to maintain a continuous supply in line with Government of India directives. The crisis had prompted a surge in raw material costs, restrictions on industrial propane use and higher freight expenses, leading several ceramic units in Morbi to suspend operations from mid-March 2026 and affecting more than 0.2 million (0.2 mn) workers. GGL's geographical area and corporate teams engaged extensively with industry stakeholders, including the Morbi Ceramic Association, to facilitate a phased restart of operations. Focus areas included continuous availability, competitive and stable pricing and the delivery of required supply volumes. The firm has initiated gas supply agreements with ceramic units to address concerns over availability, pricing and volumes and to support operational continuity. Industrial activity in Morbi began to resume in April 2026, with gas consumption rising from approximately 0.36 mmscmd serving about 83 units on 31 March 2026 to approximately 2.70 mmscmd serving around 290 units on 22 April 2026. GGL expects the number of active gas consumers to increase to roughly 675–700 units and projects total gas consumption of 6–7 mmscmd in May 2026. The company's diversified sourcing strategy underpinned assurances of uninterrupted supply and price certainty for the month of May 2026. The measures are intended to restore production across the cluster and to help reinstate employment for workers affected by the temporary shutdowns. In addition to industrial supply, GGL is facilitating piped natural gas connections for employee canteens within manufacturing units to strengthen the local ecosystem. The company said it remains committed to supporting the Morbi ceramic industry and to enabling sustainable, long-term growth.

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