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Shares of gas distribution company Gujarat Gas rose 1.5 percent intraday on Thursday hitting the level of Rs 853.55. Global research firm CLSA has come out with a report on the oil & gas space wherein the house suggests a buy on Gujarat Gas on any weakness in anticipation of a collapse in spot LNG price in 2018. It feels that strong spot LNG price may be seen as a negative for Gujarat Gas.
The house expects a collapse in spot LNG price in 2018 as the prices have risen 75 percent in the last four months.
The global firm is of the view that concerns on mispriced long-term LNG contracts are likely to resurface namely GAIL India.
GAIL India has signed contracts for sourcing up to 5.8 million tonne of LNG from the United States. The company is also likely to cut its spot purchases once volumes from the United States begin, adding that in 2018 GAIL expects to obtain close to 80 cargoes from the United States.
At 11:43 hrs Gujarat Gas was quoting at Rs 852.90, up Rs 13.10, or 1.56 percent. It has touched an intraday high of Rs 855.90 and an intraday low of Rs 840.55.
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