Manish Sheth, Chief Financial Officer of Gujarat State Petronet (GSPL) expressed hope that the gas transmission volume of the company would recover once the global gas prices decline to some extent.
In the last 11-12 quarter, the company has been witnessing fall in its volumes because of continuous fall in gas production from KGD6 basin. GSPL’s transmission volumes decreased 16 percent year on year to 27.56 mmscmd in the third quarter.
The company expects that its volume has bottomed out and it would only rise from here. Brokerage house Prabhudas Lilladher also sees GSPL’s transmission volumes bottoming out following fall in KG D6 production.
Medium term growth for volumes could emerge from Hazira expansion, Dahej expansion and new Mundra LNG terminal, the brokerage said in a recent report.
According to the brokerage, the company has already booked around 2.25 mmtpa from upcoming incremental Dahej capacity slated to come on stream in the next three years.
But some brokerages expect the tariffs of the firm to decline going forward as Petroleum and Natural Gas Regulatory Board is aggressively looking to cut down tariffs.
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