Brokerages said if the suggestions are approved, they will have a positive impact on city gas distribution companies such as Indraprastha Gas and Mahanagar Gas.
The CGD sector is heavily dependent on priority sector gas allocation, which has come down to around 90-93 percent, forcing them to use expensive contracted & spot LNG gas to fill the gap
European nations are staring at troubles both economic and political, which can have a contagion effect on multiple industries and trading partners
Net profit of Rs 185.20 crore in April-June compared with Rs 204.08 crore in the same period a year back, according to a company’s stock exchange filing.
The price revision comes amidst rising prices of the natural gas at source both internationally as well as for domestically drilled gas. Rising prices have forced suppliers and distributors to cut down on industrial supplies since the past many weeks.
Fourth-quarter performance was better than September’s as international gas prices eased from $50/MMBtu to $20-25/MMBtu. However, the shortage of APM gas continued in the quarter
Natural gas demand is expected to increase despite high prices
Mahanagar Gas saw strong growth in CNG/PNG volumes in second quarter
The ambitious goal of a 15 per cent share in the energy mix by 2030 requires competition in the CGD space and a further decrease in prices for end-consumers.
The government announcing the 11th round of city gas distribution bidding may turn out to be a good opportunity for MGL
Low LNG price, demand-supply dynamics and regulatory push all augur well for Indraprastha Gas (IGL) and Mahanagar Gas (MGL)
Downward revision in gas prices negative for upstream gas players, but positive for downstream gas marketing companies, fertilisers, tiles and power sectors
Reduced travel and industrial activity dent volumes and erodes revenue for MGL in Q1. Recovery is on the cards
Allocation of new GAs in the 10th round of CGD bidding will be an additional growth driver for the future.
Allocation of complementing geographies stands as a positive for the downstream gas companies and would facilitate higher utilisation of the existing infrastructure, thereby bringing added operating efficiencies in the long term
Given the macro opportunities, we remain positive on the sector's growth story
IGL and MGL are strategically venturing into newer geographies. This would ensure a rapid growth in volumes in the future
Any increase in the prices of natural gas could have a visible impact on associated sector companies.