Oil and Gas
Oil and Gas
SECTOR | 21 Apr 2023
ICICI Securities Limited
The combination of the softer domestic gas prices expected over FY24E-FY26E and the persistent softness in spot LNG prices should be a comfort for margins of the CGDs (city gas distribution companies). Our estimates are building-in (‘spot LNG price of’) ~US$20/mmbtu over H1FY24E and ~US$30-32/mmbtu average price for H2, implying an average price of US$25-26/mmbtu for the full year in our base case estimates.
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