Gujarat State Petronet (GSPL) is hoping that its volumes will recover going forward as they seem to have bottomed out. The company, which provides gas grid, is hoping that softening international gas prices will provide fillip to volumes in next financial year.
"Once the prices cool down a bit I think we should see some recovery in the volumes," Manish Sheth, CFO, Gujarat State Petronet.
The company's volumes have declined over the last 11-12 quarters due to continuous fall in gas production from KGD6 basin. GSPL's transmission volumes decreased 16 percent year on year to 27.56mmscmd in the third quarter. Also Read: Supply side pressures to weigh on crude in FY14
Brokerage house Prabhudas Lilladher also sees GSPL's transmission volumes bottoming out following fall in KG D6 production. "Medium term growth for volumes could emerge from Hazira expansion, Dahej expansion and new Mundra LNG terminal," the brokerage said in a recent report.
GSPC has already booked around 2.25 mmtpa from upcoming incremental Dahej capacity slated to come on stream in the next three years, the brokerage added.
Meanwhile, Gujrat State Petronet expects tariffs to maintian going forward -- a view not endorsed by Angel Broking. "Petroleum and Natural Gas Regulatory Board is aggressively looking to cut down tariffs. Hence we see decline in tariff going forward," says an analyst from the brokerage.
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