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Strong demand to drive gains for stocks of city gas distributors

GAIL has come under pressure since it is not receiving contracted liquefied natural gas (LNG) cargoes and it is being forced to buy LNG at much higher prices

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High spot LNG rates could impact demand further

Devangshu Datta
An interesting opportunity could be opening up in the city gas distribution (CGD) space. Share price of CGD companies, such as Indraprashtha Gas (IGL), Mahanagar Gas (MGL) and Gujarat Gas (GGL), have corrected sharply since the start of the Russia-Ukraine war as international gas prices have shot up due to fears of supply disruption.

The administered price mechanism of domestic gas has also been revised upwards. GAIL has come under pressure since it is not receiving contracted liquefied natural gas (LNG) cargoes and it is being forced to buy LNG at much higher prices. Rupee depreciation has added to

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First Published: Sep 21 2022 | 10:55 PM IST

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