Also, an increase in piped natural gas and compressed natural gas consumption should also drive up the operating profit margins of gas distribution firms, said a Crisil report
22-25% – Decline in liquefied natural gas prices since January
5-7% – Expected rise in piped natural gas consumption
Up to 7% likely increase in compressed natural gas consumption
250-300 basis points – Expected rise in profit margins of city gas distribution firms in first half of fiscal 2020
$6.5-7 per mmBtu – estimated spot LNG prices in first half of next fiscal
The margin improvement would be more pronounced for CGD entities with higher share of industrial consumers of PNG," — Prasad Koparkar, senior director, Crisil Research