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This Article is From Jan 18, 2021

Oil & Gas Sector Check: LNG Rush May Be Short Lived, Says Nirmal Bang

LNG Rush May Be Short Lived, Says Nirmal Bang

Oil & Gas Sector Check: LNG Rush May Be Short Lived, Says Nirmal Bang
A pedestrian walks past liquefied petroleum gas pipelines in Navi Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

The sharp spike in liquefied natural gas spot prices to record levels is likely to be a short-term worry for the Indian gas sector on the margin as -

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  1. most of India's LNG demand is met from long-term LNG and
  2. the seasonal spurt in Asia and European gas demand has been above normal due to the cold wave in the Northern hemisphere/China saw the mercury dip to levels not witnessed since 1966.

We discuss the implications for the Indian gas sector, including a sensitivity analysis on key stocks and the factors behind this gas rush, which in our view is due to seasonal factors, short supply of gas and shortage of LNG ships for spot cargoes.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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