Gujarat Gas supports revival of Morbi ceramic industry with assured gas supply and pricing

Gujarat Gas Ltd (GGL) on Thursday (April 23) said it is supporting the revival of the ceramic industry in Morbi by ensuring uninterrupted gas supply and price stability amid recent geopolitical disruptions. Gujarat Gas is the authorised supplier of Piped Natural Gas (PNG) in Morbi.”Over the years, GGL has developed a comprehensive gas distribution network to meet the full potential demand of the Morbi ceramic cluster. During the recent geopolitical crisis, the company proactively sourced natural gas from non-Middle East markets at spot rates to maintain a continuous supply in line with the government of India directives,” according to a stock exchange filing.

The crisis led to a surge in raw material costs, restrictions on industrial propane usage and higher freight expenses, prompting several ceramic units in Morbi to voluntarily suspend operations from mid-March 2026, affecting the livelihoods of over 2 lakh workers.
Also Read: Gujarat Gas shares may re-rate as per Nomura, who highlights benefits from three-way mergerGGL’s Geographical Area and Corporate teams engaged with industry stakeholders, including the Morbi Ceramic Association, to facilitate the restart of operations. The focus was on continuous gas availability, competitive and stable pricing, and required supply volumes.

These efforts have begun to show results, with industrial activity in Morbi gradually resuming in April 2026. Gas consumption increased from about 0.36 mmscmd serving around 83 units as on March 31, 2026, to about 2.70 mmscmd serving around 290 units as on April 22, 2026.
Gujarat Gas has addressed key concerns related to gas availability, pricing and supply volumes and has initiated execution of gas supply agreements with ceramic units. The number of active consumers is expected to increase to around 675–700 units, with total gas consumption projected at 6–7 mmscmd in May 2026.Also Read: Gujarat Gas shares jump 8% as Nomura upgrades on Morbi demand outlook

“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 has boosted confidence among manufacturers and is expected to accelerate the revival of production across the cluster,” it said.

The resumption of operations is also expected to benefit nearly 2 lakh workers impacted by the temporary shutdown of manufacturing units during the crisis. In addition, Gujarat Gas is facilitating PNG connections for employee canteen facilities within manufacturing units, further strengthening the ecosystem.

Gujarat Gas said it remains committed to supporting the Morbi ceramic industry and is confident of addressing current challenges while enabling sustainable long-term growth.

Shares of Gujarat Gas Ltd ended at ₹385.80, up by ₹2.70, or 0.70%, on the BSE.

Also Read: Gujarat Gas Q3 Results: Earnings meet weak expectations but stock falls over 3%