PSU natural gas giants, GAIL (India) and Mahanagar Natural Gas (MGL) faced a huge blow as their main gas pipeline in Wadala, Mumbai, damaged inside the RCF compound. This has disrupted CNG and PNG supply in major commuting areas like main Mumbai, Navi Mumbai, and Thane, among other regions. Following which, the availability of transports like OLA, Uber, Kali-Peeli Taxis and autorickshaws has taken a massive hit. Office goers and other travellers are struggling to reach their destination.
Why MGL, GAIL Pipeline Damaged?
As per the company statement, MGL informed that its natural gas supply such as CNG and PNG has been disrupted due to third-party damage in the main gas supply pipeline of GAIL (Gas Authority of India) inside RCF (Rashtriya Chemicals and Fertiliser) in the compound.
MGL's gas supply at City Gate Station (CGS) in Wadala was heavily affected.
Notably, MGL is the largest supplier of CNG and PNG in the regions of Mumbai. Buses run by the public transport undertakings of the city, and majority of autorickshaws and taxis along with online cab aggregators like Uber and Ola use MGL-provided CNG in Mumbai city.
Due to the latest setback, CNG stations in major regions like main Mumbai, Thane, Navi Mumbai and places where CNG is supplied to PSU buses were hit. The availability of transport services is also impacted accordingly. Long queues of vehicles is also reported at CNG stations.
Nonetheless, MGL reportedly announced that it has prioritised and ensuring to supply its piped natural gas (PNG) consumers to residential places without interruptions, as per a PTI report.
The gas supply has been restored at CNG stations, and the companies are expecting the situation to normalise soon.
MGL's CNG supply is hit at a time when its rival Indraprastha Gas (IGL) has hiked CNG prices by Rs 1 per Kg in northern cities like Noida, Greater Noida, Kanpur and Ghaziabad among others.
Mahanagar Gas Share Price:
After the incident, MGL share price witnessed selling pressure on Monday. At the time of writing, MGL stock traded at Rs 1,232 apiece, down by 1.72% with market cap of Rs 12,169.42 crore. The stock is near its intraday low of Rs 1,231.50 apiece.
GAIL Share Price:
Unlike MGL, GAIL share price traded volatile but mostly in green. At the time of writing, GAIL is performing at Rs 184.20 apiece on BSE, up by 0.4% with market cap of Rs 1,21,113.34 crore. The stock is near its intraday high of Rs 185.10 apiece.
Rashtriya Chemicals and Fertilizers (RCF) Share Price:
The share price of RCF is trading on a bullish note. RCF is currently trading at Rs 152.15 apiece on BSE, up by 1.3% with market cap of Rs 8,393.93 crore. This PSU is also near its intraday high of Rs 153.55 apiece.
About Mahanagar Gas Limited:
Mahanagar Gas Limited, (MGL) one of the India's leading Natural Gas Distribution Company was incorporated on 8th May 1995. GAIL (India) Limited (Maharatna Company of Government of India) is the promoter of MGL.
For investment related articles, business news and mutual fund advise
Click it and Unblock the Notifications
Sign in with Google