Mumbai CNG Supply Hit: MGL, GAIL shares in focus after pipeline damage causes disruption at Wadala

Shares of Mahanagar Gas Ltd. (MGL) and GAIL (India) Ltd. will be in focus on Monday, November 17, after compressed natural gas (CNG) supply to Mumbai was disrupted on Sunday due to damage to a main pipeline, MGL said.

The disruption occurred after third-party damage to GAIL's main gas supply pipeline inside the RCF compound, affecting supply to MGL's City Gate Station (CGS) at Wadala, the company said in a statement.

MGL said it is prioritising uninterrupted supply to domestic PNG consumers. However, CNG stations across Mumbai, Thane and Navi Mumbai may remain shut due to the stoppage of gas flow to CGS Wadala and, in turn, to MGL's pipeline network.

Gas supplies across the network will be restored once repairs are completed and supply to CGS Wadala resumes, the company added.

A majority of autorickshaws and taxis, including those operated by Ola and Uber, as well as several public transport buses run on CNG supplied by MGL, making the disruption particularly significant for the city's mobility.

MGL reiterated that it has prioritised residential supply, ensuring uninterrupted piped natural gas to households.

The company did not specify a timeline for restoring supply, nor did it elaborate on the cause of the pipeline damage.

MGL has advised industrial and commercial customers in affected areas to switch to alternate fuel for the time being.

Shares of Mahanagar Gas Ltd. settled 1.88% higher at ₹1,255, while GAIL (India) closed 0.071% higher at ₹183.80 on Friday.