Gujarat Energy Ltd. (GEL), India’s largest city gas distribution company and a major importer of liquefied natural gas (LNG), is exploring the development of dedicated port-based infrastructure for propane imports and storage as part of its strategy to diversify fuel offerings for industrial customers.
According to industry sources, GEL is currently engaged in discussions with multiple ports in Gujarat to identify suitable locations for the proposed facilities. The company has also initiated negotiations with leading global energy suppliers, including QatarEnergy and Saudi Aramco, for the long-term sourcing of propane.
As part of the initiative, GEL is evaluating the construction of an import jetty and associated storage infrastructure near Morbi, Gujarat, which is home to India’s largest ceramic manufacturing cluster. The region has become a key market where propane is increasingly competing with natural gas as a preferred industrial fuel due to its pricing and operational advantages.
Speaking during an investor earnings call earlier this week, company officials confirmed that preliminary discussions on draft supply agreements have already been held with several prospective suppliers. However, GEL aims to establish its own import and storage infrastructure to ensure supply reliability, operational flexibility, and greater control over its propane value chain.
The company is therefore continuing discussions with port authorities across Gujarat while assessing potential locations capable of supporting large-scale propane imports and storage operations.
The move reflects a broader trend among energy companies seeking to capitalize on rising industrial demand for alternative fuels, particularly in energy-intensive manufacturing sectors such as ceramics, where fuel costs play a critical role in competitiveness. If implemented, the project would strengthen GEL’s position in India’s evolving industrial energy market while expanding the country’s propane import and distribution capabilities.
