Rajkot: Several ceramic manufacturing units in Morbi have resumed operations after disruptions caused by the US-Iran war, according to Gujarat Gas Ltd (GGL).In a statement, GGL said 142 ceramic units have restarted operations of the 377 units that ran on PNG. “This gradual stabilization is the result of coordinated efforts between the Morbi Ceramic Association and GGL to secure alternative energy supplies,” the company said.Before the crisis began in Feb, Morbi’s ceramic industry relied heavily on propane. Around 415 units sourced nearly 5.6 MMSCMD (natural gas equivalent) of propane from oil marketing companies, including Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited, accounting for approximately 70% of the sector’s fuel consumption. Concurrently, GGL was supplying PNG to 377 units.In March, disruptions in LNG supply led to a surge in raw material and freight costs, along with restrictions on industrial propane use. GGL said it was also required to comply with a Union gazette notification limiting gas supply to 80% of the average consumption recorded of the previous six months. Several manufacturers thus voluntarily shut operations mid-March.To address the crisis, GGL stepped up engagement with industry stakeholders and arranged additional natural gas supplies to offset the shortfall in propane availability. Despite high LNG prices, the company continued supply through April, sourcing additional volumes from spot markets outside the Middle East in line with govt directives.However, challenges remain. Global LNG prices are still high, between $18 and $20 per MMBtu. GGL said it remains prepared to supply the required volumes to support further resumption of operations in the coming months.
