India's city gas distributors' demand growth outlook weak - analysts

Indraprastha Gas

30/11/2023 07:43

(Recasts, adds Kotak comments)
    ** India's city gas distributors (CGD) will see weak demand
growth as consumption is set to slow down, Kotak Institutional
Equities analysts said
        ** Kotak sees medium-term volume outlook weak and long
outlook even weaker for CGDs as gas costs will keep rising amid
weaker consumption from power, fertiliser sectors
  
        ** Meanwhile, a sustained rise in Asian spot LNG prices
during the winter will pose concerns for India's CGDs, JM
Financial says
    ** Gujarat Gas  GGAS.NS  could be the most impacted given
20%-30% dependency on spot LNG - JM Financial
    ** Even though spot LNG prices have normalised in CY23 from
record high levels, they are still relatively high at
$16.4/mmbtu, JM Financial analysts say
    ** Gujarat Gas down 0.1%, Adani Total Gas  ADAG.NS  down
3.3%, Mahanagar Gas  MGAS.NS  up 0.5%, Indraprastha Gas IGAS.NS 
down 0.7% on Thursday

 (Reporting by Sethuraman NR in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))