Mahanagar Gas Limited — Important, 15-11-2024: General Updates

The allocation of APM natural gas to Mahanagar Gas Limited has seen a significant reduction of approximately 18%, effective November 16, compared to the previous month. This decline is expected to impact the company’s profitability, as the supply will now be limited to the amounts allocated by GAIL (India) Limited. In response to this shortfall, MGL is actively seeking alternative gas sources, including domestically produced High Pressure High Temperature (HPHT) gas and New Well/Well Intervention gas from ONGC, alongside exploring benchmark-linked long-term gas contracts. This proactive approach aims to ensure a stable gas supply for its customers despite the decreased allocation. Investors should monitor this development closely, as it could influence MGL’s operational efficiency and financial performance.