Middle East Conflict Triggers Gas Crisis, Paralyzes Gujarat Industries
The escalating conflict in the Middle East has delivered a severe blow to Gujarat's industrial sector, with gas supplies slashed by up to 50% across key manufacturing hubs. Industry sources report that this drastic reduction is crippling production, leaving numerous units struggling to meet order deadlines and threatening widespread operational shutdowns.
Gujarat Gas Ltd Declares Force Majeure Amid Supply Crunch
Gujarat Gas Ltd has formally notified stock exchanges of the crisis, attributing it to the recent Middle East hostilities that have severely constrained the availability of re-gasified liquefied natural gas (R-LNG). In an official statement, the company revealed it has issued force majeure notices to its industrial customers, restricting daily contracted quantities effective from 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 stated, adding that it is closely monitoring developments and will provide updates to stock exchanges.
Vatva and Sanand Industrial Clusters Bear the Brunt
In Vatva, Ankit Patel, former president of the Vatva Industries Association, highlighted that approximately 250 chemical units rely on piped natural gas from Adani Total Gas Ltd as fuel. Due to the conflict, supply has been cut to just 40% of contracted volumes. "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," Patel explained.
Similarly, in the Sanand GIDC area, Ajit Shah, president of the Sanand Industry Association, reported that over 20 gas-dependent units received emails informing them of a 50% reduction in contracted gas supply starting Friday. "This will hamper production and could cause units to miss deadlines on ongoing orders," Shah warned, underscoring the immediate operational challenges.
Surat Industries on Edge as Production Schedules Hang in Balance
Surat's industrial landscape is watching the situation with growing anxiety, as many chemical, textile, and food processing units depend heavily on gas as their primary energy source. Industry representatives caution that any sustained interruption could force partial or complete shutdowns, disrupting production schedules and driving up costs across these vital clusters. Gujarat Gas supplies over one lakh cubic metres of gas per day to industrial consumers in Surat, making the city particularly vulnerable to supply fluctuations.
The broader implications of this gas crisis extend beyond immediate production delays, potentially impacting Gujarat's economy and export capabilities if the conflict persists. Stakeholders are urging for swift resolutions and contingency plans to mitigate further damage to the state's industrial backbone.
