Petronet LNG Ltd. has recently been upgraded to a 'buy' rating by UBS, with the target price for the stock being significantly increased. This upgrade is driven by the expected surge in LNG demand in India, which is projected to grow at a faster rate than domestic gas output.

Positioned to Capitalize on India's Increasing Reliance on LNG

UBS highlights that Petronet is well-positioned to capitalize on India's increasing reliance on LNG. The company has secured long-term LNG supply contracts that will add to its capacity, and it is expected to play a critical role in meeting the incremental gas demand in India.

The planned expansion of Petronet's Dahej terminal and improved pipeline connectivity at the Kochi terminal further support its ability to manage the growing demand for LNG. The expansion of the Dahej facility, along with the implementation of use-or-pay agreements, provides strong earnings visibility for Petronet.

Projected Increase in Revenues

UBS projects that Petronet's revenues will increase in the coming years, driven by increased LNG import volumes. The company's strategic initiatives and infrastructure developments position it well in the Indian energy landscape.