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Natural Gas Price Decline by 16%; Repercussion on Value Chain Partners

News

The government today cut natural gas prices by 16 per cent to $4.24 per unit for the six-month period, beginning October 1. 

Source: ET

SNP Insights

Decline in natural gas price by  16 percent would benefit Power & Fertilizer consumers significantly, with reduction in feedstock cost. Yet balance sheet of ONGC & Reliance might face the maximum heat , resulting in less investment in future.

Pertaining to fact that, oil price has gone down by 60% bringing price disparity between  oil & gas, consumers were shifting from gas to Oil, for their fuel usage. Hence this natural gas price decline might check the practice to some extent.

Source: SNP Infra Research