Somany Ceramics says supplier restricts gas supply, amid Middle East conflict

Tile manufacture Somany Ceramics said it has received a communication from Sabarmati Gas Ltd (SGL) stating that due to the ongoing conflict in the Middle East and its impact on global energy markets, Regasified Liquefied Natural Gas (R-LNG) supplies have been severely impacted.

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Accordingly, SGL has informed that the Daily Contracted Quantity of gas supply shall be provisionally restricted to 50 per cent of the contracted quantity or the actual average daily volume drawn during February 2026, whichever is lower, with effect from 6 March, 2026 until further notice, Somany said.

This restriction may temporarily impact operations at the company’s Kadi plant in Gujarat, it said.

Somany said it also has limited gas supply arrangements with GAIL (India) Lts and considering this arrangement and available inventory, the company does not foresee any material impact on its overall business operations at present.

All other plants of the Company continue to operate normally. The Company is closely monitoring the situation and will provide further updates in case of any material developments, it added.

Strait of Hormuz, located between Oman and Iran and the vital artery for global energy trade has been shut amid the US-Israel-Iran war. The supplies have been hit.

India imports 85 per cent of its crude oil and half of its LNG requirement. Out of it 40- 50 per cent of crude oil and 50-60 per cent of LNG are shipped through the Strait of Hormuz, according to Crisil Ratings.

Sectors such as ceramics and fertilisers, with high dependence on imported liquefied natural gas (LNG), could see near-term production impact, so will require close monitoring.

 

 

 

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