India's top oil and gas producer ONGC has seen a drop in natural gas production from aging fields that supply CNG and piped cooking gas, resulting in supply reductions for city gas distributors like IGL, MGL, and Adani-Total, officials said. Oil and Natural Gas Corporation (ONGC) is offsetting the natural decline in output from ageing gas fields by drilling new wells. However, gas from these new wells is sold at a higher price to cover the added costs, officials said. Natural gas extracted from the ground and seabed is converted into CNG for vehicles and used as cooking fuel when piped to households. Gas from fields allocated to ONGC on a nomination basis is priced by the government and referred to as APM gas. This APM gas serves as the feedstock for city gas distributors. APM gas is priced at 10 per cent of the monthly average rate of the crude oil basket India imports for its energy needs. However, the price is capped with a floor of USD 4 per million British thermal units and a .
While CGDs say profitability will be hit, officials said the move is in line with stated policy positions
GAIL (India) Ltd chairman and managing director Sandeep Kumar Gupta on Friday said significant progress in the Kolkata city gas distribution network has been achieved with pipelines now reaching the eastern metropolitan, paving the way for accelerated natural gas adoption in the city and adjoining districts in near future. The development comes after prolonged delays due to challenges in navigating fisheries-rich districts of Midnapore, critical for pipeline routing for the Jagdishpur-Haldia-Bokaro-Dhamra pipeline. "The pipeline has reached Kolkata, so city gas distribution will get accelerated. Earlier we had to transport it," Gupta told PTI on the sidelines of the Institute of Internal Auditors India 32nd AGM. Asked about a timeline, he said, "We stand by the minimum work programme under which all the city gas distribution entities have to work. The work programme is decided by the Petroleum and Natural Gas Regulatory Board. So, they will be working all in line with that work ...
On the bourses, GAIL share price rallied as much as 7.03 per cent to hit an intraday high of Rs 178.75 apiece
Mahanagar Gas shares surged following reports that Morgan Stanley, a New York-based brokerage firm, initiated coverage with an 'Overweight' rating
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Analysts are downgrading earnings projection and expect further cuts to APM allocations in the future
Given the weak demand, and lower price arbitrage versus petrol/ diesel, and upcoming Assembly elections, price increases will be gradual, hitting margins across H2FY25
APM gas allocation cut by around 20% for CNG segment will have an adverse impact on the profitability of MGL and IGL
According to reports, global brokerage UBS has recommended 'Buy' ratings on IGL and MGL with target prices of Rs 700 per share and Rs 2,400 per share, respectively
CGDs say they can't hand over access capacity to new entities without more details from govt
Brokerages see an upside of up to 23 per cent in Gujarat Gas stock as they believe that the restructuring of these Gujarat companies will simplify the existing layered structure.
Oil & Gas stocks outlook: Indraprastha Gas and Mahanagar Gas are awaiting a breakout from a narrow trading band, show technical charts.
Authorised CGDs have provided half of their targeted PNG connections to households
Petroleum and Natural Gas Regulatory Board (PNGRB) in a public notice said the infrastructure exclusivity granted to geographical areas in Mumbai and Greater Mumbai have expired
Domestic gas consumption in CGD declined to 26.5 mmscmd in January
The I-Squared Capital-backed city gas distribution companies received approval for the merger from the European Commission in February and aims to enhance efficiency and up market competitiveness
To boost PNG adoption, AG&P Pratham has launched exclusive schemes and benefits for its new users under this drive, offering Free Gas for one month, Zero Security Deposit
The trends indicate a positive trajectory across various segments of natural gas consumption
Regulator warns them of losing bank guarantees as investors show little interest in gas economy