Share price of domestic gas companies Petronet LNG and GAIL (India) soared over 8 per cent in the morning trade on Friday as Ras Gas Company (RasGas) has agreed to modify sales and purchase agreement (SPA) with Petronet. Petronet has a 25-year deal with Qatar’s RasGas to buy 7.5 million tonnes of LNG annually.
According to Petrowatch, RasGas ready to modify SPA with Petronet. RasGas Company Limited is a liquefied natural gas producing company in Qatar. It is the second-biggest LNG producer in Qatar after Qatargas.
At 10.33 am, the share price of Petronet LNG was trading 8.20 per cent up at Rs 223. The scrip opened at Rs 208.25 and had touched a high and low of Rs 224.60 and Rs 208.25, respectively, in trade so far.
Similarly, share of GAIL (India) were trading 8.03 per cent up at Rs 342.35 apiece. The stock opened at Rs 321 and had touched a high and low of Rs 346 and Rs 321, respectively, in trade, so far. The benchmark BSE Oil and Gas index was up 1.68 per cent at 9,124.81.
According to Kotak, Petronet and RasGas have agreed ‘in principle’ to postpone $1.5 bln of penalties for the shortfall in LNG off-take.
Contract renegotiation may provide significant earnings impetus to GAIL and remove the key overhang for Petronet. India lifted 30 per cent less volume, till July this year, under long-term Qatar LNG deal.
(With inputs from Reuters)