ICICI Securities: Gas Sector Outlook - PNGRB Deliberations Delay Reforms; Likely By December 2020 At The Latest
Gas flares burn from pipes aboard an offshore oil platform in the Persian Gulf’s Salman Oil Field, operated by the National Iranian Offshore Oil Co., near Lavan island, Iran. (Photographer: Ali Mohammadi/Bloomberg)

ICICI Securities: Gas Sector Outlook - PNGRB Deliberations Delay Reforms; Likely By December 2020 At The Latest

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Petroleum and Natural Gas Regulatory Board (PNGRB) member Mr Satpal Garg in a recent interview indicated that:

1. PNGRB is exploring whether the PNGRB Act allows it to fix unified tariff for connected pipelines of multiple entities;

2. if fixing one integrated tariff for connected pipelines of multiple entities is not immediately possible, it will fix separate integrated tariff for each entity in phase I and one tariff for all entities in phase II;

3. notification of regulations allowing competition in city gas distributors has been delayed as PNGRB is deliberating on fixing eligibility criteria, how to ensure focus not just on compressed natural gas and the basis for incumbents to charge tariff for use of its network by new entrants.

Unified tariff and regulation allowing competition in CGD is likely by December 2020, when the first phase of Jagdishpur-Haldia and Bokaro-Dhamra (JHBD) pipeline is scheduled to be commissioned and the term of the chairman of PNGRB expires.

Indraprastha Gas Ltd. and Mahanagar Gas Ltd. would be more hit by competition than Gujarat Gas Ltd.

Unified tariff would help boost JHBDPL’s utilisation but GAIL India Ltd.’s tariff rise is more likely from reforms PNGRB next plans to focus on.

Click on the attachment to read the full report:

ICICI Securities Gas Sector Update.pdf


This report is authored by an external party. BloombergQuint 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 brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.