CNG-PNG use could soar on all-time high price edge over other fuels: Crisil
The sale of natural gas for domestic and commercial uses through compressed natural gas (CNG) and piped natural gas (PNG) is expected to grow by at least a quarter, according to Crisil Ratings.
“Gas consumption is set to soar 25-27 per cent this fiscal, driven by rebounding vehicular mobility and industrial activity, and a record price advantage versus competing fuels such as petrol, diesel and furnace oil,” Crisil Ratings said in a statement.
“Such strong growth will help city gas distributors sustain robust operating margins of around 28 per cent, even as higher prices of liquefied natural gas (LNG) get partly absorbed to cushion the impact on consumers. That, and strong balance sheets, will support stable credit profiles of distributors,” the statement added.
