Middle East conflict: Industrial units in Gujarat hit as gas supplies slashed to 50%

Ahmedabad/Surat: The conflict in the Middle East has dealt a blow to industries across Gujarat, with gas supplies slashed by up to 50% at several industrial clusters. Industry sources report that the restricted supply has disrupted production, leaving many units struggling to fulfil their orders in time.Gujarat Gas Ltd has formally notified stock exchanges of the crisis. The company stated that the recent conflict in the Middle East has severely constrained the availability of re-gasified liquefied natural gas (R-LNG). "In light of the above situation, the company issued force majeure notices to its industrial customers under the provisions of the gas supply agreements, restricting the daily contracted quantity effective Friday. Acts of war are not covered under the insurance taken by Gujarat Gas Limited. The likely impact of force majeure, currently an ongoing event, cannot be estimated at this time. The company is closely monitoring the developments and will keep the stock exchanges informed of any material updates in this regard." The impact is already being felt in key industrial zones.
Ankit Patel, former president of the Vatva Industries Association, said, that about 250 chemical units in Vatva rely on piped natural gas from Adani Total Gas Ltd as fuel, and the company has cut supply to just 40% of contracted volumes due to the conflict. "Any unit consuming gas beyond the reduced prescribed quantity faces nearly double the standard price, making additional usage economically unviable. As a result, all affected units are operating at just 40% of their installed capacity, directly affecting sales and profits."Ajit Shah, president of the Sanand Industry Association, said more than 20 gas-dependent units in the Sanand GIDC area received emails informing them that they would receive only 50% of their contracted gas quantity from Friday. "This will hamper production and could cause units to miss deadlines on ongoing orders," he said.In Surat, industries are watching the situation with growing anxiety. Many chemical, textile and food processing units depend on gas as their primary energy source, and industry representatives warned that any sustained interruption could force partial or complete shutdowns, disrupting production schedules and driving up costs across key clusters. Gujarat Gas supplies over one lakh cubic metres of gas per day to industrial consumers in Surat. (With inputs from Yagnesh Mehta)