The ones having higher exposure to industrial segment are to benefit more as prices of natural gas will become competitive to other industrial fuels. Further the gas-based power pips imported coal as LNG is available at Rs 3.65/KWhr compared with imported coal at Rs 4.20/KWhr and therefore more competitive.
Given the fact that Gujarat Gas caters to majority of industrial demand in Gujarat, it remains a significant beneficiary.
Indraprastha Gas which supplies to Delhi National Capital Region remains a beneficiary too. Meanwhile increased demand of gas benefits gas transmission and pipeline players. Analysts at Edelweiss believe GSPL could log strong gains as it has the largest exposure to short-term volume contracts transmitted through its pipelines.
Analysts at IDBI Capital on the other hand expects Petronet LNG and Gujarat Gas to benefit most in the near-term under the current scenario of lower LNG prices and higher liquid fuel prices. The stocks of Gujarat Gas, IGL, Mahanagar Gas, Petronet LNG are all trading near their 52-week highs, while GSPL and GAIL have rebounded 13-20 per cent from their lows in February. GAIL being the largest transporter of gas should also benefit though some analysts feel that GAIL faces some risk of defaults by customers in the long term.