Gujarat factories forced to switch to R-LNG

Vol 18, PW 1 (28 Aug 14) News in Brief

Gujarat-based companies are being forced to switch to R-LNG following a government decision to slash by 281,000 cm/d the amount of domestic gas allocated to 27 factories beginning August 1.

“CNG and piped gas to households are the two top priorities now,” says an oil ministry source. “Gas allocations to all non-priority sectors will be cut to meet demand in these two sectors.

” Most affected are glass, chemicals, electronics and auto spare parts companies in south and central Gujarat. Amongst the big losers is glass maker Gujarat Guardian which had supplies cut from 70,000 cm/d to just 37,000 cm/d.

Gujarat Alkalies & Chemicals (GACL) with plants at Dahej and Vadodara and Piramal Glass, which each received 50,000 cm/d, both had supplies cut by 21,000 cm/d. “We can’t stop production,” says a glass factory source.

“So we must source R-LNG instead.” This is the third amendment to the allocation guidelines by the ministry since November, 2013.