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Morbi ceramic units eye full revival in May as Gujarat Gas ramps up PNG supply
Morbi's ceramic cluster, hit by a March disruption, is on track to return to full capacity in May as PNG supply expands. By April 22, gas consumption rose to 2.70 mmscmd with about 290 units operating, and officials expect 675–700 units to run by May, connected to PNG. Production will focus on domestic demand amid higher gas prices and limited export orders.
Why It Matters
The revival sustains one of the world's largest ceramic hubs, supporting jobs and exports. Gas pricing and PNG supply arrangements with Gujarat Gas are pivotal to the sector's recovery.
Timeline
8 Events
April 25, 2026: May consumption projected to 6–7 mmscmd as all units resume
April 25, 2026
With improving supply, consumption is projected to rise to 6–7 mmscmd in May as all Morbi units resume production.
April 25, 2026: LNG sourcing and volume alignment during restart
April 25, 2026
During the disruption, Gujarat Gas directly sourced LNG from Africa and other non-Middle East markets and coordinated with stakeholders to ensure supply continuity and alignment of volumes to support unit restart.
April 25, 2026: Gas price rise and shift to PNG
April 25, 2026
Gas prices have increased sharply and are nearly double those in March. Part of the higher cost will be passed on to customers, with production currently focused on domestic demand as export orders remain limited.
April 25, 2026: About 400 units have signed MGO for May
April 25, 2026
Around 400 units have already completed minimum guarantee offtake (MGO) agreements with Gujarat Gas for May, with the remainder expected to sign in the next few days.
April 24, 2026: Officials say cluster on track for May revival
April 24, 2026
A senior government official said on Friday that the Morbi cluster was on track to return to full strength by May, with 675–700 units expected to be running as Gujarat Gas ramps up PNG supply.
April 22, 2026: PNG-enabled operations expand to about 290 units
April 22, 2026
Operations picked up in April, with gas consumption rising to 2.70 mmscmd by April 22, serving around 290 units.
End of March 2026: Operational activity declines; PNG uptake begins
March 2026
By the end of March, about 83 units were operational and gas consumption stood at 0.36 mmscmd as the cluster began to resume activity.
March 2026: Disruption hits Morbi ceramic cluster as fuel supply constraints bite
March 2026
The Morbi ceramic sector began a disruption in March 2026 after fuel-supply chains were disrupted by the Iran conflict, forcing a shift from LPG/propane. About 450 of the roughly 700 units suspended production and moved to maintenance; exports to Middle East markets were affected (around 25% of Morbi's output), with over two lakh workers affected.