Petronet LNG shares: Nomura retains ‘Buy’, target price Rs 345; Kochi pipeline seen driving utilisation

The latest market report highlights that Nomura has retained its 'Buy' rating on Petronet LNG with a target price of Rs 345, following a visit to the firm's Kochi LNG regasification terminal, and stated pipeline connectivity could drive a meaningful gain in utilisation.

"Once linked to Bangalore and the national gas grid, Kochi volumes can be swapped and sold anywhere in India. Management anticipates a meaningful utilisation step-up within 4 to 6 months of connectivity," Nomura stated in its September 27 report.

Shares of Petronet LNG were trading at Rs287.55 on the NSE at 9:19 am on Monday, up 0.37%.

The Kochi terminal has a nameplate capacity of 5 MMTPA but its utilisation is at present around 25%, mainly due to limited pipeline connectivity beyond Kerala and parts of Tamil Nadu. The Kochi-Mangaluru-Bangalore pipeline, spanning 891 km, is under construction, with management guiding for mechanical completion by March 2027.

Nomura stated a separate Kochi-Tuticorin pipeline, with a design capacity of 6.84 mmscmd, is additionally scheduled but could take two to three years due to land acquisition timelines.

The brokerage additionally highlighted gas-up/cool-down (GUCD) services as an incremental topline opportunity. A pipeline upgrade has trimmed GUCD turnaround time by 65% to 1-1.5 days.

"Earlier LNG vessels had to go to Singapore GUCD services, but now Kochi offers GUCD facility at par with Singapore," Nomura stated. Three GUCD services were performed in June 2026, while management anticipates demand to improve meaningfully once the Strait of Hormuz opens up.

At Dahej, July-August utilisation stood at around 92% on unexpanded capacity and around 72% on the expanded 22.5 mtpa capacity, according to PPAC data cited by Nomura.

Nomura maintained its DCF-based target price of Rs345, with WACC at 12% and terminal expansion at 2%.