New Delhi: Shares of Swan Energy NSE -4.22 % rallied 15 per cent during early trade on Thursday as India looks to boost its liquefied natural gas (LNG) imports from next year.
Swan Energy has started its floating terminal, raising the country's capacity to ship in the super chilled fuel by 12 per cent to 47.5 million tonnes per annum (mtpa).
Shares of the company rallied 15 per cent to Rs 149.80 on Thursday, before trading at Rs 147.5 at 10.20 am. BSE Sensex was trading 146.8 points, or 0.26 per cent, higher at 56,090.99 at the same time. The scrip settled at Rs 130.60 on Wednesday.
New demand for LNG from India is expected to support Asian gas prices which rose to record highs earlier this year, partly aided by the transition from coal or oil to gas in developing countries.
The 5-mtpa floating storage and regasification unit (FSRU), located at Jafrabad in western Gujarat state, will be commissioned in April, said P Sugavanam, director at Swan Energy and chairman of Swan LNG Ltd, which is developing the project.
Shares of Swan Energy have underperformed the benchmark indices in the last one year. The scrip has added 10 per cent during the period where BSE Sensex has jumped 45 per cent.
India, the world's fourth largest LNG importer, wants to raise the share of natural gas in its energy mix to 15 per cent by 2030, from the current 6.2 per cent to cut emissions.
Source:economictimes.com