Gujarat Gas to invite EoI from the Ceramic customers in Morbi & Surendranagar
Gas

Gujarat Gas to invite EoI from the Ceramic customers in Morbi & Surendranagar

Ceramic Cluster in the Districts of Morbi and Surendranagar is one of the largest ceramic production cluster in the World

  • By ICN Bureau | March 16, 2024

Gujarat Gas Limited (GGL), the largest City Gas Distribution (CGD) Company in India, is making rapid strides in the CGD areas by launching an aggressive customer centric campaign.

GGL has comprehensively transformed its strategy for industrial segment, with a customer centric vision focusing on customer convenience, awareness, faster response and automation of all processes so as to further penetrate the existing market and get customers on board. With a focus on sustainability, GGL strives to be a key player in the energy transition, contributing to a greener and more sustainable future.

Increase in share of natural gas in India's energy mix from 6.5% to 15% by 2030 is envisioned. Reduction of carbon intensity is the prime focus area for India. Various initiatives taken by GGL to aggressively promote use of natural gas in various customer segments will not only promote use of natural gas, but also help in achieving reduction in carbon intensity in India.

Ceramic Cluster in the Districts of Morbi and Surendranagar is one of the largest ceramic production cluster in the World and accounts for a whopping 90% to India's ceramic products market share. 

Natural Gas continuous to be one of the preferred fuel for the Ceramic customers on account of it's inherent benefits viz. environment friendly, uninterrupted supply through pipeline network, no logistics requirement etc. GGL's pipeline network is connected with almost all the Ceramic customers located it's authorised area in the Districts of Morbi and Surendranagar.

Typically for the ceramic products, the fuel cost consists of ~30% of the end product cost and hence it is essential for the manufacturers to have a fair estimate of the fuel (i.e. Natural Gas) price projections to avoid any major shocks.

In order to provide customers clarity on the natural gas price projections, GGL shall be inviting "Expression of Interest" (EoI) from the Ceramic customers of Morbi & Surendranagar area. The customers shall be required to state the quantity of natural gas they wish to off-take for the specified duration of time. GGL shall provide relevant information viz. Pricing of Natural Gas, Tenure of the contract etc. which shall aid the customers in deciding the quantity.

This arrangement is expected to be a mutually beneficial proposition for the customers and GGL. At present GGL supplies more than 4 mmscmd of Natural Gas to the Ceramic customers of Morbi & Surendranagar area and with this EoI, GGL expects to add 3 mmscmd of volume.

This EoI once again reaffirms GGL's dedication in providing customer-centric solutions to one of the key industrial clusters in India. This initiative will boost Ceramic Industry of Gujarat.

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