Growth prospects upbeat for gas players

Pressure on natural gas prices will drive earnings of gas companies

The pressure on natural gas prices persists, led by a larger-than-expected climb in US supplies. The expectations are that gas prices will remain under pressure moving forward as well. This should lend support to prospects of gas processing and distribution companies such as GAIL, Indraprastha Gas, Gujarat Gas and Mahanagar Gas, as well as imported gas receivers and re-gasification companies such as Petronet LNG.

The lower gas prices are positive given the surge in demand helping all the players in the space and this is expected to continue. Analysts at Elara Capital say that global liquefied natural gas (LNG) supply would