Stories
Nomura Retains 'Buy' on Petronet LNG, Sees Kochi Pipeline Boosting Utilization
M
Moneycontrol•28-09-2026, 09:28
Nomura Retains 'Buy' on Petronet LNG, Sees Kochi Pipeline Boosting Utilization
- •Nomura maintains a 'Buy' rating on Petronet LNG with a target price of Rs 345, anticipating increased utilization from pipeline connectivity.
- •The Kochi LNG terminal's utilization, currently at 25% due to limited pipeline access, is expected to rise significantly within 4-6 months of connectivity to Bangalore and the national gas grid.
- •The 891 km Kochi-Mangaluru-Bangalore pipeline is under construction, with mechanical completion guided for March 2027.
- •Petronet LNG is exploring a separate Kochi-Tuticorin pipeline and has an incremental revenue opportunity from Gas-Up/Cool-Down (GUCD) services, now comparable to Singapore's offerings.
- •Dahej terminal's July-August utilization stood at 92% on unexpanded capacity and 72% on the expanded 22.5 mtpa capacity.
Key Questions Answered
Nomura maintains a 'Buy' rating on Petronet LNG with a target price of Rs 345.
Management is guiding for the mechanical completion of the 891 km pipeline by March 2027.
A pipeline upgrade has reduced the gas-up and cool-down turnaround time by 65% to 1-1.5 days.
