India's city gas distributors rise as govt asks GAIL to import gas

Mahanagar Gas

11/05/2022 07:10

** Shares of Indian gas distributors Gujarat Gas  GGAS.NS 
jump 7.4%, while Indraprastha Gas  IGAS.NS  and Mahanagar Gas
 MGAS.NS  rise 2.5% and 3.5%, respectively, amid a selloff in
the broader market
    ** India has mandated state-run GAIL (India) Ltd  GAIL.NS 
to import gas and buy from local difficult fields to meet
growing demand  urn:newsml:reuters.com:*:nL3N2X12ZR
    ** City gas distributors (CGD) have set up sales network to
supply gas to transport and households across the country
    ** GAIL will pool imported and domestic gas to arrive at a
uniform base price, create level playing field for all CGD
players 
    ** The current ceiling price of the gas from difficult
fields is $9.92/mmBtu, lower than the spot prices of the
liquefied natural gas LNG-AS
    ** The new rules allows quarterly allocation of gas for
transport and households sector on the basis of demand in the
previous three month
    ** GAIL shares are up 1.5%, while transmission co Gujarat
State Petronet Ltd  GSPT.NS , which has investments in CGD
companies, rises 4.4%

 (Reporting by Nallur Sethuraman in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))