GANDHINAGAR — Gujarat Gas Limited has initiated a strategic support plan to revive the Morbi ceramic industry, ensuring a steady supply of piped natural gas (PNG) and price stability. The move comes as a relief to the industrial hub, which faced significant shutdowns starting in mid-March 2026 due to geopolitical disruptions and rising costs.
By securing natural gas from non-Middle East spot markets, the company has successfully facilitated the reopening of hundreds of manufacturing units, safeguarding the livelihoods of approximately 2 lakh workers.
Strategic Recovery Metrics
The impact of Gujarat Gas’s intervention is reflected in the rapid increase of industrial activity within the cluster:
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March 31, 2026: 0.36 mmscmd consumed by ~83 active units.
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April 22, 2026: 2.70 mmscmd consumed by ~290 active units.
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May 2026 Projection: 6–7 mmscmd serving up to 700 units.
Countering Industry Challenges
The Morbi cluster, a global leader in ceramics, was recently hampered by a combination of high freight expenses, restrictions on industrial propane, and volatile raw material costs. To counter this, Gujarat Gas engaged with the Morbi Ceramic Association to provide:
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Supply Assurance: Guaranteed volumes to prevent further production halts.
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Competitive Pricing: Stable rates to help manufacturers maintain global competitiveness.
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Ecosystem Support: Extending PNG connections to employee canteen facilities to improve onsite infrastructure for workers.
Economic Impact
The revival of these units is critical for the local economy, as the sector is a primary employer in the region. Gujarat Gas’s diversified sourcing strategy, executed in line with government directives, has ensured that the energy needs of the cluster are met despite global supply chain fluctuations. This partnership aims to return the Morbi ceramic industry to its full manufacturing capacity by the end of the current quarter.
