Shares of Petronet LNG climbed nearly 3 per cent on Thursday after the company announced that it has entered into a binding sale and purchase agreement (SPA) with Qatar’s RasGas for supply of an additional 1 MTA of LNG to India starting in 2016 for onward sale to IOC, BPCL, GAIL and Gujarat State Petroleum Corporation.
According to reports, Qatar has also agreed to lower gas prices for India and waived off $ 1.5 billion penalty for lower offtake. According to Reuters, the price cut will help Petronet save Rs 4,000 crore ($604.69 million) a year,
The share price of Petronet LNG closed 2.99 per cent up at Rs 254.85. Sensex closed 0.61 per cent up at 26,117.54.
According to PTI, LNG prices to fall by about $5.50 per mmBtu after Qatar agreed to reflect slump in energy rates in India gas deal. India to buy additional 1 million tonne per annum of LNG from Qatar at new pricing formula.