Gas Prices - How Long Can The Bearish Sentiment Last? ICICI Securities' Analysis

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.There has been a surprising lack of traction in liquefied natural gas prices at the onset of the European winter, with the high levels of inventory and warm temperatures across Europe dragging prices. Additionally, demand across India and China has weakened considerably due to the persistent high prices across Asia and the Covid lockdown till recently in China. Overall, the next six-nine months do seem positive for Indian gas players, with lower than estimated prices for both domestic and imported gas to help keep prices at manageable levels. Nevertheless, we remain wary of extrapolating these price trends through to FY24E-FY25E given the likelihood of rebound in Chinese demand, renewed inventory build-up in Europe and relatively limited growth in global LNG exports over the next two years. We therefore continue to assume average LNG prices at $25-28/metric million British Thermal unit for FY24E. In this scenario, we see margins for city gas distributions remaining strong over FY24E, helped by lower domestic gas prices and moderate LNG prices. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Gas Prices - How Long Can The Bearish Sentiment Last? ICICI Securities' Analysis

The anticipated jump in global LNG prices from Dec-22 onwards has failed to materialise owing to abnormally warm winter in Europe.

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