IGL, MGL, Gujarat Gas shares higher after BJP manifesto talks of expanding piped gas network

In the oil & gas sector, BJP government’s vision is to get more and more households converted to PNG-D. This implies incremental revenue for players like GAIL, PLNG, in addition to CGD players like IGL, MGL, Gujarat Gas, and Adani Total Gas, according to Phillip Capital.

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26 Aug, 2025 12:21

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Shares of listed piped gas providers like Indraprastha Gas and Mahanagar Gas were in demand on April 15 on hopes of more business opportunities, a day after BJP released its 2024 election manifesto promising extension of existing schemes for energy access and more clean-energy solutions.

Ambitious Plans for Piped Gas

The party manifesto promised that the government will push a variety of programmes to ensure energy security.

Expanding the city gas distribution network is part of the NDA government’s target to increase share of natural gas in the energy basket to 15 percent by 2030 from the current level of 6.8 percent. The government’s objective is to get more and more households converted to piped natural gas.

Expert Take

"Since these licenses are already given out, the work has started, with some ordering already done as per the minimum work program that CGD license holders are supposed to follow. However, there will be incremental demand as well. This move will also have a positive bearing on consumption, and therefore, import of natural gas (LNG) in the country," a note by PhillipCapital mentioned on April 14.

This implies incremental revenue for players like GAIL, PLNG, in addition to CGD players IGL, MGL, Gujarat Gas, and Adani Total Gas," PC said.

Price Action

On the afternoon of April 15, shares of IGL climbed over 4 percent to hit the day's high of Rs 489 on the National Stock Exchange (NSE). So far this year, the stock has rallied 12 percent. In comparison, benchmark Nifty has risen around 2 percent.

Shares of Mahanagar Gas also rose around 3 percent to day's high of Rs 1,476 on NSE. The stock has outperformed Nifty 50 in YTD time, registering gains of around 21 percent.

Gujarat Gas share price also rose nearly 3 percent to Rs 576.10. Year-to-date, the stock has climbed around 20 percent, beating Nifty returns by a margin.

Earlier this year, the Petroleum and Natural Gas Regulatory Board (PNGRB) issued licenses for supplying piped natural gas (PNG) for entire India, barring Andaman and Lakshadweep. At present, there are 1.2 crore PNG connections in India, up more than four folds from 25.4 lakh across 66 districts in 2013-14.

Also Read | BJP promises to cover senior citizens, transgenders under Rs 5 lakh Ayushman Bharat scheme

Last year, the government informed Parliament that authorised entities have been given a target to provide 125 million PNG connections by 2030, both in rural and urban areas. Increasing the share of renewable energy in India's energy basket has been a focus area for the government.

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