City gas distribution dolat report

The revised parameters are as below: We expect this clarification to emerge over the next few months. The aggressive expansion is expected to continue and IGL will reap long-term benefits. Data submitted by companies was too less for any meaningful calculation. Any increase in the domestic supplies in the coming years would be an added advantage for CGD companies to fuel growth as well as profitability.

This segment reduces the gas price risk as the hike is passed on to end users, thereby protecting profitability. Competitive Bidding for New Licenses The regulations put a process for selection of a CGD entity for a new city on the basis of competitive bidding.

City Gas Distribution Dolat Report

GGCL would be able to expand its absolute spreads on a per unit basis due to changing revenue mix. Regulatory hurdles during FY13 have beaten down the stock significantly. At current prices, PNG is cheaper as compared to liquid fuels. Investor sentiment would improve and new geographical areas will come up for CGD.

Incremental volume is catered by high cost imported RLNG. This segment is catered by high cost RLNG. It has been instrumental in shifting public transport to CNG from conventional fuels.

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. On an average, a CGD project for a mid tier city could be developed with an investment of around Rs 4 bn.

Regarding marketing margin issue, we believe that it would not be implemented on CGD sector. The matter under contest relates to the fixation of Network Tariff and Compression Charges.

Fuel economics of gas as a fuel across all segments, will provide long term demand sustainability. Its business model in NCR has been a benchmark for the rest of the country to promote green fuel culture.

The network tariff charged by the owner for the use of infrastructure by other players is a biddable parameter.

CNG segment has been growing double digits for GGCL and considering the usage economics we expect this segment to continue to grow strongly. Dolat Research The expansion will come in the form of: Our view is further corroborated from the following aspects of the sector: Increase in pipeline network: The sector remained dormant for a very long time.

The dominant market position, entry barriers, favourable business prospects, secure gas tie ups and strong parentage will ensure steady growth for IGL. Earlier the issues were of gas supply, which are sorted due to availability of RLNG. The CNG segment is expected to grow The strength of the business model was never tested till rising input cost forced it to revise prices regularly.

This is resulting in a volume loss again in CYAnother function is to reduce the pressure of the gas to be sent for distribution. a mixture of air and natural gas are explosive over the range of 5% to 15% natural gas.

at the city gas station the odorization of the natural gas takes place. Geographical Area Covered State / UT Operating Entity Authorised by PNGRB Year of Starting Operation City Gas Distribution Networks in India. India City Gas Distribution Market Report Analysis by Type, Source of Supply, End-Use, Competition Forecast & Opportunities ().

World Perspective of City Gas Distribution, would like to give thanks to IPMG for providing us with the required infrastructure and the facilities to complete this report.

3. City Gas Distribution 3 Objective The City Gas Distribution is one of the most happening and challenging business in the present scenario of Oil and Gas sector.

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 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 dolat report
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