Better consumption brightens growth prospects of gas utility companies

Fertiliser and city gas segments set to fuel growth; power demand may revive soon

The recent figures on consumption indicate better growth prospects for gas utility companies such as GAIL, Indraprastha Gas and Petronet LNG, among others, in the near term.

Though power demand remained subdued, two sectors, city gas distribution (CGD) and fertilisers, are fuelling growth in consumption of gas.

According the Petroleum Planning and Analysis Cell, consumption of natural gas rose by over 5 per cent year-on-year in November 2019 and by 3.2 per cent in FY20 so far. 

The growth was contributed by fertiliser and city gas segments, which saw a rise of 20-25 per cent. They accounted for about half the total natural