City Gas Distribution

Near-term margin pressure for city gas distribution companies' stocks

Since administered pricing mechanism (APM) and new well gas (NWG) prices are tied to global prices, which are tied to crude, this may be a positive

Refining boost isn't enough; Nuvama turns selective on Oil & Gas for FY26

According to Nuvama, the outlook for OMCs is clouded by high capital expenditure commitments and rising under-recoveries, which are set to keep return ratios suppressed.

IGL vs MGL: Which stock to buy amid tax cut buzz in Gujarat? Analysts weigh

City gas distributors Indraprastha Gas and Mahanagar Gas may see a major earnings lift as Gujarat slashes VAT on gas to 2%. Analysts expect improved margins, profitability, and strong stock upside

Crude slips to 3-month low; INR weakness seen pressuring OMCs, CGDs: Nomura

Nomura said that the INR's depreciation remains a headwind for OMCs and CGDs, as their input costs are dollar-linked while revenues are in rupees.

Indraprastha Gas gains 3% on JV with RVUNL for solar project in Rajasthan

Indraprastha Gas share price was trading 2.9 per cent higher at ₹217 per share against the previous close of ₹210.93 on the NSE

₹1,950 crore CGD project in Bankura, Purulia to be completed by FY30

The Rs 1,950 crore City Gas Distribution (CGD) project in West Bengal's Bankura and Purulia districts aims to provide Piped Natural Gas (PNG) connections to 5.55 lakh households, over 250 commercial units, and more than 35 industrial consumers, officials said. Prime Minister Narendra Modi on Friday laid the foundation stone for the project that aims to provide Piped Natural Gas (PNG) to both retail households and industrial projects in the two districts of West Bengal. The project will establish 29 Compressed Natural Gas (CNG) stations for vehicular fuel across the two districts in line with authorisation from the Petroleum and Natural Gas Regulatory Board (PNGRB), a statement said. The project is scheduled for completion by March 15, 2030. Once operational, it is expected to serve a population of over 65 lakh with cleaner, reliable, and cost-effective fuel solutions, Bharat Petroleum said. According to BPCL Director (Refineries) and acting Chairman & Managing Director, Sanjay ...

Analysts decode impact of PNGRB tariff regulation changes on IGL, MGL

PNGRB tariff news: While analysts see IGL benefitting the most from the changes due to the possibility of charging higher tariffs, MGL and GGL may be negatively impacted, they said

Mahanagar Gas top pick among CGDs, Gujarat Gas least preferred: Nomura

Nomura has maintained a 'Reduce' rating on Gujarat Gas Ltd (GGL), citing intense competition in the I&C space, subdued volume growth prospects, and constrained pricing power.

Margins likely to improve for city gas distribution majors on price cuts

LNG prices may remain muted over the next 3-4 years due to new LNG capacity and bearish crude oil trends

PM Modi lays foundation stone for ₹1,010 cr City Gas Project in Bengal

The project will provide piped gas to over 250,000 homes and boost clean energy access in Alipurduar and Cooch Behar of West Bengal

ONGC's cheaper APM gas supply dips, costlier supply to distributors doubles

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 .

Up to 20% of APM gas allocation replaced with costlier new gas: CGDs

While CGDs say profitability will be hit, officials said the move is in line with stated policy positions

Kolkata city gas distribution network expands with pipeline reach: Gail

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 ...

Brokerages lower GAIL target on weak Q3; long-term positive outlook intact

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 share pops 6% as Morgan Stanley initiates with 'Overweight'

Mahanagar Gas shares surged following reports that Morgan Stanley, a New York-based brokerage firm, initiated coverage with an 'Overweight' rating

IGL, BPCL, Gail (India) shares rise 2% each on in-principle nod to MNGL IPO

MNGL IPO news: BPCL's Board has given an in-principle approval for MNGL listing

Lack of pricing power, competition to hit city gas distribution firms

Analysts are downgrading earnings projection and expect further cuts to APM allocations in the future

Margin pressure ahead as city gas distribution majors continue to struggle

Given the weak demand, and lower price arbitrage versus petrol/ diesel, and upcoming Assembly elections, price increases will be gradual, hitting margins across H2FY25

MGL, IGL stocks tank up to 14%; Why are CGD shares falling in trade today?

APM gas allocation cut by around 20% for CNG segment will have an adverse impact on the profitability of MGL and IGL

City gas distributors' MGL, IGL rally 6% on healthy volume growth hopes

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