Shares of city gas distribution companies declined in early trade on March 4 after brokerage Citi warned that India’s gas value chain could face elevated risks following reports that Qatar has halted LNG production, potentially tightening global gas supplies.
Stocks such as MGL, Gujarat Gas, IGL were trading lower in morning deals. Mahanagar Gas (MGL) fell around 7%, Gujarat Gas declined about 2%, while Indraprastha Gas (IGL) slipped roughly 2.5% during the session.
Citi said India’s gas ecosystem could be at greater near-term risk if LNG supplies from Qatar remain disrupted. Qatar has supplied around 40–50% of India’s LNG imports in recent years, making it a critical source of gas for the country’s energy needs.
According to the brokerage, replacing these volumes entirely could prove difficult in the near term, particularly as global LNG prices have already surged. Lower availability of LNG may affect downstream gas demand and supply dynamics across India’s gas value chain.
Citi also highlighted that companies dependent on imported LNG could face volume risks. Among city gas distributors, the brokerage flagged Gujarat Gas as relatively more exposed due to its higher reliance on both Qatar LNG and spot LNG supplies.
The brokerage added that supply disruptions could also affect the broader gas ecosystem, including transmission volumes and industrial gas consumption if LNG availability tightens and prices rise.
The development has triggered caution among investors in gas-linked stocks, with market participants assessing the potential implications of a prolonged supply disruption for India’s LNG-dependent sectors.
Disclaimer: The views and investment tips expressed above are those of the brokerage and do not represent the views of this publication. This article is for informational purposes only and does not constitute investment advice.