India's Petronet LNG falls to 6-mth low after Citi flags regulatory risk

Petronet LNG

02/01/2025 06:40

** India's top LNG importer Petronet LNG  PLNG.NS  falls
6.2% to 362.75 rupees, biggest pct fall since June 2024
     ** PLNG top pct loser in mid-cap 100 index  .NIFMDCP100 ,
which is up 0.1%     
    ** Citi flags tariff risk for PLNG after Petroleum and
Natural Gas Regulatory Board (PNGRB) called to bring
regasification - conversion of liquefied natural gas into gas -
under regulatory framework 
    ** PNGRB has said despite expansion of LNG terminals in
India, gas tariffs have not come down, while PLNG has raised
tariffs 5% annually
    ** Brokerage says PLNG cannot raise tariffs arbitrarily for
LNG import terminals if regasification is regulated, retains
"sell" call
    ** With new LNG capacities coming up, there is uncertainty
on sustainability of PLNG's strong pricing power - Citi 
    ** PLNG rose ~55% in 2024, logging its best annual gains
since 2014

 (Reporting by Sethuraman NR, Yagnoseni Das in Bengaluru)
 ((Yagnoseni.Das@thomsonreuters.com;))