City gas distribution dolat report

The capping of the number of cylinders has increased the demand for PNG. Great Eastern Energy Corp. It has to its credit development of over 3,km of gas pipelines involved in retail delivery.

We feel GGCL is ideally placed to capitalise on the potential with assured profitability. These two areas offer significant industrial potential. Acceptance of the regular price hikes shows the economic advantage of even expensive gas.

It also eliminated the subsidy and brings in a level playing field for various consumers of gas. CGD companies cannot be assured of a confirmed off-take like Power with a fixed margin and hence they carry the risk of marketing the gas to retail consumers.

However, we believe that GSPC coming in would bring faster expansion — required for volume growth. Not defined but is considered to be the difference between the final selling price and summation of Network Tariff, Compression Charge and Gas cost.

Government still has ambitious plans for CGD space and if this has to move ahead there could be no capping of marketing margins. This is being witnessed in the current year CY These parameters have also undergone some change due to some malpractices witnessed in the earlier rounds of bidding.

Fresh investments — bidding for new areas are frozen. At current prices, PNG is cheaper as compared to liquid fuels. Network Tariff is the charge for utilizing the existing infrastructure of the authorized CGD operator.

Time Line December 26, Event Ministry of Petroleum asks PNGRB to initiate process for determining marketing margin charged by gas companies Dolat View This got initiated due to fertilizer ministry asking to look in the marketing margins charged by gas selling companies.

The network tariff charged by the owner for the use of infrastructure by other players is a biddable parameter. However, considering the case of 3 major CGD players of India, viz.

This segment is catered by high cost RLNG. IGL has a flexible pricing for industrial segment we expect that benefit of decline in RLNG prices would be passed on to the industrial consumers.

The only risk to this is the prices of RLNG moving upwards sharply from the current levels. The latest cap on the number of cylinders if six cylinders per household is retained has made PNG more attractive. The dominant market position, entry barriers, favourable business prospects, secure gas tie ups and strong parentage will ensure steady growth for IGL.

It is expected to grow at The remaining is RLNG. Interaction with industry participants reinforces our opinion that regulatory concerns will improve in favour of CGD space. Investor sentiment would improve and new geographical areas will come up for CGD.

We still maintain this view. Further, in the wake of regulatory issues being taken up at the Supreme Court level, the bidding for new areas took a back seat, and put to rest long term plans of government to promote CGD.

For the gas produced from the NELP blocks, the contractor who develops and produces from the field can propose a selling price of gas.

Availability of gas has been the key driver of consumption as an industrial fuel along with CGD developments. The expanding pipeline infrastructure, favourable economics of gas and a growing concern over pollution makes a sound investment case in CGD space provided the strategy to deal with supply side issues and regulatory risks is in place.

India City Gas Distribution Market Size, Share & Analysis – By Type (PNG &CNG), By CGD Allocation, Competition Forecast & Opportunities.

City Gas Distribution Dolat Report

City Gas Distribution Dolat Report. DOLAT CAPITAL City Gas Distribution India Research C G D Coming out of the Woods!!! Analyst: Priyank 2 DOLAT CAPITAL Executive Summary City gas distribution (CGD), one of the rising sectors in the India energy pie.

City Gas Distribution (CGD) companies are those companies which are license to distribute natural to domestic, commercial, industrial and CNG customers in an authorized area. Gas utilities receive gas at Gas receiving terminals from bulk transporter.

CGD Company is authorized to lay, build and operate gas. CITY GAS DISTRIBUTION IN INDIA Mission zThe prospects of the city gas distribution (CGD) sector have improved in the past couple of licences have been issued at a much faster pace.

Gas availability has increased due to the priority being given to the compressed natural gas (CNG) and piped natural gas (PNG).

City Gas Distribution Dolat Report Essay

DOLAT CAPITAL City Gas Distribution India Research C G D Coming out of the Woods!!! - City Gas Distribution Dolat Report introduction! Analyst: Priyank Chandra Tel: + E-mail: [email protected]

com January 04, DOLAT CAPITAL Index Executive Summary Regulatory Development Gujarat Gas Company Indraprastha Gas CGD Sector 3 5 9 19 According to the report, the City Gas Distribution (CGD) market in India is forecast to reach 20, MMSCM by

City gas distribution dolat report
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