Gas supply jitters begin rattling industry pockets

Concerns over disruptions in natural gas and LPG supplies are beginning to affect operations in some industries, though others say the impact so far remains limited.

- ISHITA AYAN DUTT, ANJALI SINGH, SHIVANI SHINDE, SHARLEEN D'SOUZA & GULVEEN AULAKH

At least two major steel producers said the shortage has started to affect certain downstream processes, although the disruption is not yet severe. One industry executive said natural gas or propane is commonly used in furnaces, meaning production cannot remain entirely insulated from supply constraints.

“Natural gas or propane is used in the furnace, so there is an impact. As of now, it’s not major,” said the executive.

Smaller steel mills, however, warn the situation could worsen if the shortage persists.

Vivek Adukia, chairman of the West Bengal-based Steel ReRolling Mills Association of India, said that while LPG may not be a primary raw material, it remains essential for certain operational processes. “Induction furnace operators who manufacture billets require LPG for lancing. Without it, the production cycle cannot be completed,” said Adukia.

According to him, most mills currently have enough inventory to operate for the next few days. “Ifthe situation continues, some mills may have to shut down,” he added.

Packaged food companies are also beginning to feel the strain.

Industry executives earlier this week told Business Standard that some manufacturers have had to cut production at plants in certain states as gas supplies remain constrained.

By contrast, the automotive sector has so far remained. largely unaffected.