OREANDA-NEWS. March 5, 2011. Rising LNG prices are expected to make commercial and household supply of natural gas costlier by up to 20% this year, particularly in Gujarat, which has two import terminals and accounts for a third of India’s gas consumption .

BG Group’s subsidiary Gujarat Gas, GSPC Gas, the Adani Group and a joint venture of BPCL and GSPC are among the firms involved in city gas distribution (CGD) and are feeling the pinch of rising costs.

Many companies have aggressively expanded their customer base in the past year but they have not managed to gets supplies from Reliance’s D-6 gas at the administered prices of USD 4.2 per unit, forcing them to buy LNG.

State-run GSPC, which imports LNG from Russia’s Gazprom, has told its customers that the ex-terminal price of gas its sells to city gas distributing firms prices are likely to rise to USD 13.62 per unit by the end of this year from the current level of USD 11.78, a government official said.