Oil & Natural Gas Corporation 's natural gas consumption declined 4.5% YoY in the first seven months of FY26 due to reduced offtake from fertiliser, power and refinery segments, though the City Gas Distribution (CGD) segment showed healthy growth.

Market Performance and Consumption Trends

Overall gas consumption is expected to remain flat or grow at low single digits throughout FY26. The performance varied significantly across different segments, with CGD showing resilience while traditional industrial consumers reduced their gas uptake.

Global and Domestic Price Dynamics

Global LNG prices have eased considerably, supported by expectations of warmer winters across major consuming regions including the European Union, China and the United States. This price moderation has been further reinforced by healthy gas inventories maintained across major consuming nations. ICRA noted that upcoming sizeable LNG capacity additions globally are likely to result in continued moderation in LNG prices from CY2027.

Domestic gas prices are also expected to soften as crude oil prices ease amid rising global crude supplies and stable demand conditions. The rating agency projects the APM gas price for January 2026 to be around ₹6.10 per mmbtu, which is expected to benefit CGD entities by offsetting the impact of currency depreciation.

Infrastructure Investment and Financial Outlook

Capex intensity for the natural gas sector will remain high over the next three years, driven by continued investments across multiple areas. The sector is witnessing substantial investments in CGD infrastructure expansion, gas pipeline development and petrochemical capacity additions.

Credit Profile Assessment

Despite the projected rise in industry debt levels to ₹300.00 billion by March 31, 2026, leverage indicators are expected to remain healthy. The sector is anticipated to maintain strong financial metrics with interest coverage at 17.00 times and total debt to OPBDITA at 1.10 times for FY26.

The credit profile of most incumbents is expected to remain stable, supported by several key factors. These include regulatory protection, dominant competitive positions in their respective segments and regions, along with healthy margins, strong liquidity and robust financial flexibility. This stability provides a solid foundation for the sector despite the current consumption challenges and increased capital expenditure requirements.

Oil & Natural Gas Corporation Limited (ONGC) has issued a stern public notice alerting stakeholders about fraudulent activities involving the unauthorized use of its corporate name. The warning specifically targets an entity operating under the name "ONGC INDIA" that has been falsely claiming association with the state-owned oil and gas major.

Fraudulent Entity Details

The corporation has clarified that the entity using the name "ONGC INDIA" has no legitimate connection to Oil and Natural Gas Corporation Limited or any of its subsidiaries and group companies. ONGC emphasized that this unauthorized use appears to be conducted with malicious intent to mislead stakeholders and obtain wrongful gains through misrepresentation.

Stakeholder Advisory

ONGC has issued comprehensive guidance to various stakeholder categories to protect them from potential fraud:

• General public, government authorities, vendors, and contractors are advised to exercise extreme caution
• Banks and financial institutions should verify any claims of ONGC association independently
• All stakeholders must immediately cease any dealings with the fraudulent entity
• Any transactions undertaken with such entities will be entirely at the risk and cost of the concerned parties

Legal Action and Reporting

The corporation has taken a firm stance on protecting its corporate identity and stakeholder interests. ONGC has reserved the right to initiate stringent civil and criminal proceedings against the fraudulent entity and all persons involved in acts of impersonation, misrepresentation, cheating, and fraud.

The company has requested anyone who has encountered or engaged with such unauthorized entities to report the matter to ONGC along with relevant documentary evidence. This will enable the corporation to take appropriate legal action in accordance with applicable laws.

Corporate Commitment

ONGC reaffirmed its commitment to safeguarding stakeholder interests while maintaining the highest standards of transparency and integrity in all its operations. The public notice serves as part of the company's ongoing efforts to protect its corporate reputation and prevent financial losses to unsuspecting parties who might fall victim to such fraudulent schemes.