Gas companies in a sweet spot due to pet coke ban

Indraprastha Gas, GAIL and Petronet LNG are the main beneficiaries

With judicial action increasingly becoming negative on the use of pet coke, higher demand from industrial users should benefit gas companies. Industrial usage is expected to increase further with furnace oil and pet coke bans in the National Capital Region (NCR), Rajasthan, Uttar Pradesh and Haryana. The industries are to shift to alternative fuels, including natural gas, to fulfil their energy requirements. A CARE Ratings report already suggests the petroleum ministry has directed oil and gas public sector undertakings for increased supply of gas and alternative fuels to affected parts. Increasing supplies of lower-priced gas, coupled with improved demand, are