New Delhi, November 20th : .India’s gas production will be boosted by KG Basin and Motilal Oswal Financial Services.According to a brokerage report, domestic gas production could be given a boost due to RIL’s and ONGC assets located in the KG basinin.
The MOFSL also stated that domestic gas is now available for commercial use, after being stagnant at 70mmscmd over the last five years.
In the last few months, it has risen to 80 mmscmd.
Import infrastructure will be key to growing gas consumption, as domestic gas supply would not meet the 220mmscmd demand projected for FY27E.
We expect India’s LNG availability to grow to 66.5mmtpa within the next three to four years, from 42.5mmtpa.
The report also stated that important trunk pipelines such as Jagdishpur Haldia and Kochi-Bangalore would allow for better gas penetration.
It also stated that favorable gas prices will benefit domestic consumption as well as the entire gas industry in the country.
The brokerage stated that GAIL was the top choice in largecap space because of the favorable commodity price trends (higher spot and long-term prices, increased petchem margins in Q3FY22 and improved LPG price realization), and de-risking US Henry hub contracts.
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