City gas distributors optimistic about long-term growth prospects

The city gas distribution (CGD) companies are optimistic about long-term growth prospects as their robust balance sheets are capable of handling investments through low or zero leverage, given the strong operating cash flow.

Several positive factors are driving the CGD business at the moment. One is that domestic gas prices (APM gas) have been frozen, or rather a ceiling set, reducing volatility. There is no real alternative to cooking gas for most households and gas is an attractive alternative to petrol and diesel for transport.