UBS has upgraded Petronet LNG from Neutral to Buy, raising the target price to ₹400 from ₹320, citing the company’s strategic positioning as a beneficiary of India’s increasing dependence on liquefied natural gas (LNG). The brokerage highlights Petronet’s capacity expansion plans as well-timed, aligning with India’s growing LNG demand.
India’s energy transition and rising LNG requirements make Petronet a critical player in the country’s energy ecosystem. UBS notes that India has secured five long-term LNG supply contracts, set to commence from 2026, further solidifying Petronet’s prospects. The Dahej terminal, the company’s flagship facility, is expected to handle 19-20 million tonnes per annum (mmtpa) of LNG, even amid competition from new terminals.
The brokerage believes that Petronet’s focus on long-term supply security and infrastructure development positions it to capitalize on India’s energy diversification efforts. The company’s ability to balance LNG imports while navigating competitive pressures will be key to sustaining its growth trajectory.
Recent developments in the LNG sector, including the push for cleaner energy sources and India’s aggressive climate targets, add further weight to UBS’s positive outlook on Petronet LNG.
