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Overview:
Gujarat Gas Limited (GGL), India’s largest city gas distribution company, is ramping up its infrastructure and industrial partnerships with two major developments. The company has announced that its upcoming plant is expected to be commissioned in Q4 of FY 2025–26, signaling a strategic push to expand its operational footprint. Simultaneously, GGL has signed a Gas Sales Agreement with Waaree Energies for the supply of 50,000 SCMD (Standard Cubic Meters per Day) of Piped Natural Gas (PNG) at Valsad, Gujarat. These moves reflect GGL’s commitment to industrial decarbonization, energy efficiency, and long-term volume growth.
Key Highlights from Gujarat Gas’ Latest Announcements:
- New plant expected to be commissioned in Q4 FY 2025–26
- PNG supply agreement signed with Waaree Energies for 50,000 SCMD
- Valsad facility to support Waaree’s manufacturing operations with clean energy
- Strategic alignment with Gujarat Gas’ expansion and sustainability roadmap
New Plant Commissioning Timeline:
GGL’s upcoming plant is slated for commissioning in the final quarter of FY 2025–26.
- The plant is part of Gujarat Gas’ broader infrastructure expansion plan
- It will enhance supply reliability and operational efficiency across industrial clusters
- The commissioning aligns with the company’s goal to support rising demand from MSMEs and large-scale manufacturers
- The facility is expected to contribute to volume growth in PNG and CNG segments
PNG Agreement with Waaree Energies:
The Gas Sales Agreement signed with Waaree Energies marks a significant milestone in Gujarat Gas’ industrial outreach.
- Waaree Energies, a leading solar panel manufacturer, will receive 50,000 SCMD of PNG at its Valsad plant
- The supply will be used for process heating and other energy-intensive operations
- PNG offers a cleaner, safer, and more cost-effective alternative to conventional fuels like LPG and diesel
- The agreement reflects growing demand for natural gas among renewable energy manufacturers
Strategic and Environmental Implications:
These developments underscore Gujarat Gas’ role in enabling India’s energy transition.
- PNG supply to Waaree supports decarbonization of industrial processes
- The new plant will reduce dependency on spot RLNG and improve supply stability
- GGL continues to promote fuel switching in high-consumption sectors such as ceramics, chemicals, and engineering
- The company’s infrastructure investments are aligned with India’s net-zero goals and urban air quality improvement
Operational Performance and Expansion Plans:
Gujarat Gas has maintained strong momentum in customer acquisition and infrastructure rollout.
- Over 1.51 lakh domestic customers added in FY25
- Plans to add 70 new CNG stations in FY26
- Aggressive push for FDODO (Franchisee-Owned, Dealer-Operated) model to accelerate CNG growth
- Capex of Rs 1,200 crore earmarked for FY25 to support network expansion and digital transformation
Market Sentiment and Investor Takeaways:
Analysts view Gujarat Gas’ latest moves as strategically sound and growth-oriented.
- The PNG deal with Waaree Energies is expected to boost industrial volumes in Valsad
- The upcoming plant will enhance operational resilience and reduce sourcing volatility
- GGL’s AAA credit rating and stable financials continue to attract institutional interest
- The company’s focus on clean energy partnerships positions it well in the evolving energy landscape
Conclusion:
Gujarat Gas is making decisive strides in infrastructure and industrial collaboration. With a new plant set to go live in Q4 FY26 and a major PNG supply agreement with Waaree Energies, the company is reinforcing its leadership in India’s city gas distribution sector. These developments not only support Gujarat’s industrial growth but also contribute meaningfully to the country’s clean energy ambitions.
Source: Economic Times, Gujarat Gas Investor Presentation, July 31, 2025.
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