Gas stocks rally on the reports of Ras Gas Company's (RasGas) sales and purchase agreement (SPA) modification with Petronet
RasGas had signed a 25 year contract to purchase 7.5 million tonnes of LNG annually from Petronet. As per the media reports, Petronet and RasGas have agreed 'in principle' to postpone USD 1.5 billion of penalties for the shortfall in LNG off-take.
Media reports stated that 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.
Gujarat Gas gained the most with rise of (11.40%) followed by GAIL (India) (8.87%), Petronet LNG (6.11%) and Indraprastha Gas (4.14%),
Indian equities continued to gain for the second day on Friday. At 12.25 p.m, the Sensex was trading up 158.06 points or 0.61% at 25,999.98 with 24 components gaining. Meanwhile, the Nifty was trading higher by 56.80 points or 0.72% at 7,899.55 with 39 components gaining.