Oil & Gas - Inflection Point For CGD Sector: ICICI Direct

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 Direct Report.As per media sources, the Kirit Parikh committee is likely to suggest a ceiling price of $6.5-7/metric million British thermal unit for domestic gas. This ceiling may be increased by $ 0.5/mmbtu every year and could eventually be market linked by the end of the fourth year. Media reports also state that the committee recommends bringing natural gas under goods and services tax. If implemented, this move would be positive for downstream companies such as Indraprastha Gas Ltd., Mahanagar Gas Ltd. and Gujarat Gas Ltd., and marginally negative for Oil and Natural Gas Corporation Ltd. (neutral for Reliance Industries Ltd.). We expect lower sourcing costs (|6-8 per standard cubic metre) to benefit the city gas distributions on the margin front to an extent and rest be passed onto to customers (raising lucrativeness of compressed natural gas, piped natural gas over alternate fuels). For high-temperature, high-pressure fields, we expect an element of pricing freedom to encourage continued investments in that field..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.

Oil & Gas - Inflection Point For CGD Sector: ICICI Direct

As per media sources, the Kirit Parikh committee is likely to suggest a ceiling price of $6.5-7/mmbtu for domestic gas.

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