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Aggressive Bidding for City Gas Licences: Challenge for Ensuring Gas Supplies?

News

IOCl and Adani have bid combined for the City Gas license in as many as 5 Cities  across the country where there were no bids for last 8 years.

Source: ET

SNP Insight

The  development brings to light renewed investors focus for the city gas distribution liscence in various cities. However, the erractic gas supply for the last 5 years pose challenge in terms of availability of cheap domestic gas to end consumer. In such a scenario the supplies may be ensured from expensive LNG imports. Although spear heading the execution process along  enhanced availability of gas may yield fruitful returns in long run.

Source: SNP Infra Research