GAIL seen gaining from spot LNG surge, CGDs insulated
The current surge in the prices of Asian spot liquefied natural gas (LNG) seen to improve marketing margins for GAIL, while other gas utilities such as Gujarat Gas (GGL), Mahanagar Gas (MGL) and Indraprastha Gas (IGL) can offset the impact of rising prices owing to their lower exposure to spot markets and increase in supply prices.
Asian spot LNG price is up 72% from low of $5.6/ million British thermal unit (mBtu) in early March to the current level of $9.65/mbtu as severe winter depleted gas inventories in North Asia and Europe leading to competition for LNG supplies.
