GAIL (India) rose 0.62% to Rs 473.30 at 11:46 IST on BSE after the company announced the signing of a sourcing agreement between its subsidiary GAIL Global USA LNG LLC and US-based company WGL Midstream Inc.
The announcement was made during market hours today, 5 December 2014.
Meanwhile, the S&P BSE Sensex was up 34.28 points or 0.12% at 28,597.10.
On BSE, so far 45,000 shares were traded in the counter as against average daily volume of 1.15 lakh shares in the past one quarter.
The stock was volatile. The stock rose as much as 2.01% at the day's high of Rs 479.90 so far during the day. The stock rose 0.34% at the day's low of Rs 472 so far during the day. The stock had hit a record high of Rs 551.35 on 31 October 2014. The stock had hit a 52-week low of Rs 332.25 on 17 December 2013.
The stock had underperformed the market over the past one month till 4 December 2014, sliding 5.73% compared with Sensex's 2.52% rise. The scrip had also underperformed the market in past one quarter, advancing 4.79% as against Sensex's 5.45% rise.
The large-cap company has equity capital of Rs 1268.48 crore. Face value per share is Rs 10.
GAIL (India) today, 5 December 2014 announced signing of a sourcing agreement between the company's subsidiary GAIL GLOBAL USA LNG LLC (GGULL) and US-based company WGL Midstream Inc. (WGLM) for procurement of natural gas required to produce about 2.5 MTPA of LNG at the Cove Point Terminal located in Maryland, US. WGLM is a subsidiary of WGL Holdings Inc., a prominent natural gas company of the United States.
The definitive gas sale and purchase agreement has been signed for a period of 20 years and supplies are expected to commence from late 2017 when the LNG terminal, in which GGULL holds liquefaction capacity, becomes operational.
Commenting on the development, Mr. B. C. Tripathi, CMD, GAIL said, "We are delighted to partner WGLM which is a part of a group having a rich history of over 160 years in natural gas supply business in the mid-Atlantic region. This agreement is another milestone towards GAIL's efforts in sourcing of LNG to meet the rising demand of gas in the Indian market. We are now in the process of chartering of LNG ships thereby entrenching our presence across the complete LNG supply chain and bring more value to the Indian customers".
On the occasion, Mr. Terry D. McCallister, Chairman, CEO, WGL Holdings, Inc. said, "WGL Midstream's long-term relationship with GAIL capitalizes on the growing supply of abundant natural gas from the Marcellus Shale production region. This growing supply source has been providing clean burning natural gas to Northeast and Mid-Atlantic regions of the United States and now will supply the country of India as well".
GAIL (India)'s net profit surged 42.3% to Rs 1302.90 crore on 0.9% growth in net sales to Rs 14063.18 crore in Q2 September 2014 over Q2 September 2013.
GAIL (India) is India's leading natural gas company with a presence along the entire hydrocarbon value chain spanning E&P, LNG, pipelines, LPG, petrochemicals, city gas distribution etc. The Government of India (GoI) holds 56.11% stake in GAIL (India) (as per the shareholding pattern as on 30 September 2014).
Powered by Capital Market - Live News
