ICICI Securities: India’s Gas Sector Reforms Gathering Pace

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Petroleum and Natural Gas Regulatory Board (PNGRB) Chairman DK Sarraf has indicated that regulations allowing competition in City Gas Distribution (CGD) may be notified by early August 20. We believe Indraprastha Gas Ltd. (IGL) and Mahanager Gas Ltd. (MGL) would be hit by competition being allowed and the impact would be severe if gas price is deregulated. Oil and Natural Gas Corporation Ltd. (ONGC) would gain if gas price is deregulated. He said unified tariff on gas pipelines would be implemented from September 1, 2020 from which Gas Authority of India (GAIL) would neither gain nor be hit; unified tariff pools capex and opex of all inter-connected pipelines leading to lower tariff on expansions but higher tariff for existing consumers. It would bring gains for GAIL by boosting utilisation on its Jagdishpur-Haldia-Bokaro-Dhamra pipeline (JHBDPL).We expect GAIL’s tariff to be boosted by other amendments to tariff regulation proposed by PNGRB. We reiterate Sell/Reduce on IGL/MGL, Add on GAIL and Buy on ONGC..Click on the attachment to read the full report:.DISCLAIMERThis 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 brokerage 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.

ICICI Securities: India’s Gas Sector Reforms Gathering Pace

ICICI Securities: India’s Gas Sector Reforms Gathering Pace

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