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Govt Partially Restores Gas Supply To IGL, Adani-Total

The govt, earlier, cut supplies of the so-called APM gas (low-priced natural gas)

Govt Partially Restores Gas Supply To IGL, Adani-Total

Govt Partially Restores Gas Supply To IGL, Adani-Total
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13 Jan 2025 12:29 PM IST

New Delhi: The government has increased cheaper gas supply to city gas retailers IGL, Adani-Total, and Mahanagar Gas, restoring a major part of the allocation that was cut in 2024, according to regulatory filings by the companies.

The government, in October and November last year, had cut supplies of the so-called APM Gas (low-priced natural gas coming from old fields such as Mumbai High and Bassein fields in the Bay of Bengal) to city gas retailers by as much as 40 per cent in view of limited output. This led to city gas retailers hiking CNG prices by Rs2-3 per kg and planning more increases as they replaced lost volumes with higher-priced input fuel. The price hike made CNG less attractive when compared to alternate fuels like diesel.

Following this, the Ministry of Petroleum and Natural Gas in a December 31, 2024 order rejigged some allocations of gas produced from below ground and undersea. The ministry ordered a cut in gas supplied to state-owned GAIL and Oil and Natural Gas Corporation (ONGC) for production of LPG and diverting those volumes to city gas entities. Out of a total 2.55 million standard cubic meters per day of gas usage for LPG production, 1.27 mmscmd (0.637 mmscmd each for GAIL and ONGC) was ordered to be diverted for consumption in the CNG/piped cooking gas segment in January-March quarter, according to the order reviewed by PTI. City gas retailers in regulatory filings said increased volumes of APM gas will start from January 16.

India Gas Supply City Gas Retailers CNG Price Hike APM Gas Government Allocation IGL Adani-Total Mahanagar Gas 
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