The domestic city gas distribution (CGD) sector is in a crucial phase. While demand remains healthy, margins shrank last fiscal owing to a steep rise in gas prices. At the same time, planned infrastructure augmentation in the sector is propelling capex.
As a respite, softening of imported LNG prices and capping of domestic gas prices has abated the cost pressure to some extent and resulted in partial recovery in margins during the first half of fiscal 2024.
Will the margins recover further? What would that mean for the cash accruals of the players as they step up their capex plans over the medium term?
Demand has remained healthy with addition of infrastructure in terms of CNG stations and pipeline network as one of the key drivers during the past five years. But can this sustain?
Then there are questions around adequate availability of cheaper domestic gas for the CGD sector.
Similarly, competition from alternate fuels continue to pose challenges to the domestic CGD sector.
For answers, CRISIL is organising a webinar on the Indian CGD sector, titled 'Resilient and re-energised' where its experts will present insights on:
Outlook for gas demand and prices and adequacy of domestic supply over the medium term
Assessment of segmental competitiveness and outlook of overall margins
Progress on capex and its outlook
Assessment of credit metrics and outlook of credit profiles
This will be followed by a panel discussion with industry experts and a Q&A session.
Disclaimer: This event and its content are intellectual property and confidential information of CRISIL. Any use of the same without written permission of CRISIL is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
