What is causing the potential drop in India's city gas sales volumes?

India's city gas distribution sector may see daily sales volumes drop by up to 10% due to supply disruptions linked to the ongoing West Asia conflict.

How will the West Asia conflict affect the profitability of Indian city gas companies?

Profitability is expected to be cushioned as companies can pass on higher input costs to end consumers, despite potential volume moderation.

Which segments of India's city gas sector are most affected by supply disruptions?

The piped natural gas for industrial and commercial users (PNG I&C) segment, which relies heavily on imported LNG, is expected to be hit the most.

Home / Business and Economy / India Gas Supply Hit: West Asia Conflict Sparks Fears

India Gas Supply Hit: West Asia Conflict Sparks Fears

13 Mar

•

Summary

Daily sales volumes may drop up to 10% due to West Asia conflict.
Higher input costs are expected to be passed to consumers.
Sector credit profile remains resilient despite potential volume moderation.

India Gas Supply Hit: West Asia Conflict Sparks Fears

India's city gas distribution (CGD) sector anticipates daily sales volumes to decrease by 8-10% due to supply disruptions stemming from the West Asia conflict. This moderation is expected to continue until geopolitical stability is restored.

Companies are likely to pass on higher input costs to consumers, which should support profitability. The sector's reliance on domestic natural gas for 60% of its needs, with imports comprising the remaining 40%, is a key factor. A force majeure declared by QatarEnergy has intensified supply disruptions.