Moneycontrol
Nov 14, 2017 03:59 PM IST | Source: CNBC-TV18

Indian gas consumption to rise 40% & production 60% in 6-years: CLSA's Vikash Jain

CLSA is bullish on the domestic gas production and consumption space. Speaking to CNBC-TV18's Nimesh Shah, CLSA's Oil and Gas Analyst Vikash Jain says he has some valuation linked worries with oil marketing companies (OMCs).

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CLSA is bullish on the domestic gas production and consumption space. Speaking to CNBC-TV18's Nimesh Shah, CLSA's Oil and Gas Analyst Vikash Jain said he has some valuation linked worries with oil marketing companies (OMCs).

OMCs earnings from our perspective has disappointed this quarter.  The reported gross refining margins (GRMs) have come lower than our expectations, he said.

We prefer upstream oil companies versus OMCs, he added.

Speaking about Oil and Natural Gas Corporation (ONGC) and Hindustan Petroleum Corporation Limited (HPCL) merger, he said, “In our opinion, the merger is going to happen and the biggest beneficiary is going to be the government.”

Talking about the gas space, Jain said that next six years in the gas industry in India are going to be very different from the last six years. Over the next six years, we will see the gas consumption in India rising 40 percent. Domestic gas production is going to rise by 60 percent, he added.

For full interview, watch accompanying video...
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