Petronet LNG rose nearly 4% to a six-session high of 257.50 rupees on a pact, which is likely to lead to cheaper liquefied natural gas imports for the company from the Gorgon LNG project in Australia.
The company, after market hours on Friday, informed the exchanges that it has executed the final agreements to revise the pricing terms of its 20-year pact with an affiliate of ExxonMobil to import 1.44 mtpa of LNG from the Gorgon project.
The revised pricing would lead to cheaper LNG imports as the level of oil indexation under the agreement has been reduced “to reflect proximity to the prevailing oil prices informed the company.
In 2017, the stock has gained over 38%. The stock is currently trading at Rs255.2, up by Rs7.25 or 2.92% from its previous closing of Rs247.95 on the BSE. The scrip opened at Rs252.9 and has touched a high and low of Rs257.75 and Rs241.85 respectively. The stock is currently trading below its 50 DMA.
Petronet LNG is a gas distribution company that imports, stores and regasifies LNG from its two main terminals at Dahej and Kochi. The company is in the process of expanding capacity of the Dahej LNG terminal from 15 MMTPA to 17.5MMTPA. The expansion is likely to be commissioned in 1QFY19. In addtion, Petronet LNG has two long term contracts with RasGas Liquefied Natural Gas Company (RasGas) of Qatar to supply 8.50 MMTPA of LNG.
