"Unified tariffs will encourage gas transmission companies to set up new pipelines and will result in long term volume growth. Companies like Gail
and GSPL will benefit in terms of higher tariffs and profitability," Analysts at ICICI Securities said in a note.
Those at Emkay Global said that PNGRB has sweetened CGD open access by not considering the incumbent's existing OMC/dealer CNG stations as shipper for allowing access. own. PNGRB has also removed draft provisions challenging infra exclusivity such as allowing shipper to set up compressor facilities, cascade supplies and even pipelines in the event incumbent is not able to do so.
"Protection from the existing OMC CNG volume threat is a relief and near-term positive for CNG-heavy CGD players, though incoming competition would weigh on long-term growth and pricing power. Infra exclusivity protection is positive but technical disputes may crop up ahead. The unified tariff is mostly neutral," they said in a report.
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