Gujarat Gas Limited Supports Morbi Ceramic Revival with Ensured Gas Supply and Pricing Stability

Gujarat Gas Limited Supports Morbi Ceramic Revival with Ensured Gas Supply and Pricing Stability​

Gujarat Gas Limited (GGL), the authorized Piped Natural Gas (PNG) supplier for Morbi, has reaffirmed its commitment to the region's ceramic industry by ensuring continuous gas supply and price stability amidst recent geopolitical disruptions.

GGL has developed a comprehensive gas distribution network designed to meet the full potential demand of the Morbi ceramic cluster. During the recent geopolitical crisis, the company maintained continuous supply in line with Government of India directives by proactively sourcing natural gas from non-Middle East markets at spot rates.

The industry faced challenges due to a surge in raw material costs, restrictions on industrial propane usage, and increased freight expenses. These factors prompted several ceramic units in Morbi to voluntarily suspend operations starting mid-March 2026, impacting the livelihood of more than 2 lakh workers.

Corporate Intervention Drives Revival​

In response to the downturn, GGL's Geographical Area and Corporate teams engaged extensively with key industry stakeholders, including the Morbi Ceramic Association. These efforts focused on three critical areas: ensuring continuous gas availability, offering competitive and stable pricing, and guaranteeing required supply volumes necessary for operational restart.

These focused efforts have begun to yield positive results, marking the gradual resumption of industrial activity in Morbi during April 2026. Gas consumption saw a marked increase, accelerating the recovery process.

A comparison of the gas supply usage illustrates this rebound:

Projected Growth and Stability​

GGL has addressed core industry concerns related to gas availability, pricing, and supply volumes and has initiated the execution of gas supply agreements with local ceramic units.

The number of active gas consumers is projected to increase significantly, moving from the current approximately 290 units to an estimated 675-700 units. Furthermore, the total gas consumption is projected to reach 6-7 mmscmd in May, 2026.

Leveraging its diversified sourcing strategy, GGL has assured customers of uninterrupted gas supply along with price certainty for the entire month of May, 2026. This measure has boosted confidence among manufacturers and is expected to accelerate the revival of production across the entire cluster.

The resumption of manufacturing operations is set to benefit nearly 2 lakh workers who were impacted by the temporary shutdown during the crisis. Additionally, GGL is supporting the overall ecosystem by facilitating PNG connections for employee canteen facilities within manufacturing units.

Gujarat Gas Limited remains committed to supporting the Morbi ceramic industry, providing stable and sustainable growth capabilities to help the cluster overcome current challenges.

GUJGASLTD Stock Price Movement​

Today, Gujarat Gas Limited shares edged higher to close at ₹386.00, marking a gain of 0.81% on positive momentum. The stock saw significant activity in the markets, trading a total volume of 931,776 shares today.