Gujarat Energy eyes propane terminal: structural threat to Castellón
Tile Wars · markets · · Tile Wars
Gujarat Energy (GEL) is in talks with Qatar Energy to build a propane import terminal in Gujarat to secure fuel supply for Morbi, the cluster that produces 80-90% of India's tiles.
Gujarat Energy Ltd (GEL) is in talks with Qatar Energy to develop a propane import terminal in Gujarat, according to The Hindu BusinessLine. The goal: lock in fuel supply for the Morbi ceramic cluster, which produces 80-90% of India's tiles and is Castellón's main global rival.
Morbi's energy instability Natural gas consumption in Morbi collapsed from 3.35 MMSCMD in Q3 FY25 to 1.68 MMSCMD in Q3 FY26 . In March alone, the Middle East crisis triggered an additional 0.36 MMSCMD drop. Many factories now switch between natural gas, propane and coal based on daily prices — eroding margins and threatening export deliveries.
GEL's play: dual fuel menu With its own propane terminal, GEL could offer Morbi ceramic plants a dual natural gas + propane menu under a single supplier, preventing clients from defecting when fuel economics shift. A classic vertical lock-in strategy applied to Asia's largest tile hub.
Why Castellón should care Europe's Achilles heel since the 2022 gas crisis has been energy cost. If Morbi consolidates a dedicated propane infrastructure sourced directly from Qatar , India could stabilize its structural cost advantage just as Castellón tries to claw back competitiveness. Not an immediate threat, but a clear strategic signal: the competitor is closing its biggest vulnerability.
Sources Original article: The Hindu BusinessLine — "Gujarat Energy eyes propane import terminal in Gujarat, in talks with Qatar Energy" Image: The Hindu BusinessLine (bl-i.thgim.com)