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.
We see the recently revised natural gas pipeline regulations by the Petroleum and Natural Gas Regulatory Board as a positive catalyst for gas transportation – especially for Gujarat State Petronet Ltd. – following the regulator’s decision to remove the punitive provisions of 50% cut in revenue upside from new pipeline/expansions.
Other favorable changes include the extended timeline of 10 years to achieve normative utilisation – that too fixed relative to 75% of authorised capacity versus 100% earlier; the added capacity linked to new gas sources will not be included in the authorised entity’s capacity (including GSPL’s) for revising gas grid tariff; and set off credit of volume delivered above normative volume for future periods when volume falls below NV.
We see the city gas distribution subsidiary Gujarat Gas Ltd. gaining from reduced gas cost based on the forecast reduction in APM gas price to $6.5/metric million British thermal unit by Q4 FY23E, as per the cap proposed by the latest gas pricing report submitted by the Dr. Kirit Parikh panel.
Click on the attachment to read the full report:
This 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.