Oil & Gas Sector Check: LNG Rush May Be Short Lived, Says Nirmal Bang
A pedestrian walks past liquefied petroleum gas pipelines in Navi Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Oil & Gas Sector Check: LNG Rush May Be Short Lived, Says Nirmal Bang

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

The sharp spike in liquefied natural gas spot prices to record levels is likely to be a short-term worry for the Indian gas sector on the margin as -

  1. most of India’s LNG demand is met from long-term LNG and
  2. the seasonal spurt in Asia and European gas demand has been above normal due to the cold wave in the Northern hemisphere/China saw the mercury dip to levels not witnessed since 1966.

We discuss the implications for the Indian gas sector, including a sensitivity analysis on key stocks and the factors behind this gas rush, which in our view is due to seasonal factors, short supply of gas and shortage of LNG ships for spot cargoes.

Click on the attachment to read the full report:

Nirmal Bang Oil & Gas Sector- Sector Update-15 January.pdf

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