Adani Total Gas Shares Soar 20% As Government Prioritises Domestic Gas Supply

Shares of Adani Total Gas surged on Wednesday, touching the 20 per cent upper circuit during the trading session. The stock rally occurred despite India continuing to face pressure from a tightening natural gas supply situation.

The surge followed the company’s statement that domestic piped natural gas (PNG) and compressed natural gas (CNG) used in transportation have been given priority allocation under a recent government order.

The counter also recorded strong trading activity throughout the day. Market data indicated that average trading volumes increased more than twenty times compared with usual levels.

Around 16.44 million shares of Adani Total Gas were traded across the National Stock Exchange (NSE) and the BSE during the session, reflecting heightened investor participation.

Adani Total Gas operates within the city gas distribution sector. The company provides natural gas supplies to multiple consumer segments, including households, commercial establishments, industries and vehicles running on CNG.

The government’s decision to prioritise PNG and CNG allocation will help ensure continued gas supply to domestic users and transport services.

Gains in Other Gas Stocks

Shares of several other gas-related companies also moved higher during intra-day trade despite weakness in the broader market.

Gujarat Gas recorded a sharp rise of nearly 12 per cent during the session to reach Rs 420 before closing the day 3.96 per cent higher at Rs 390.

Stocks of Petronet LNG, GAIL (India), Indraprastha Gas (IGL) and Mahanagar Gas (MGL) also attracted buying interest and ended the session with gains of up to 2 per cent.

In addition to its main gas distribution operations, Adani Total Gas is exploring expansion in new energy segments. These include bio-gas, bio-fuels, biomass, liquefied compressed natural gas, hydrogen-enriched CNG, electric mobility and hydrogen-based energy solutions.

In a regulatory disclosure, the company said escalating geopolitical tensions in the Middle East have prompted certain suppliers to reduce gas deliveries.

As a result, the company has faced challenges in maintaining supply to some industrial customers.

Adani Total Gas stated that it appreciates the government’s swift decision to prioritise gas allocation for domestic PNG and CNG users, as well as for industrial and commercial consumers.

The company noted that the step would help maintain essential gas supplies during a period of global energy uncertainty.

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