Shares of Petronet LNG Ltd hit a 52-week high of Rs 296.45 on 6 February after the company announced the conclusion and execution of a long-term contract agreement with Qatar Energy.

The company, in its regulatory filing, said that this is an extension to an existing LNG supply contract of around 7.5 million metric tonnes per annum (MMTPA) LNG sales and purchase agreement on a FOB basis, signed on 31 July 1999 for supply till 2028.

Under the new agreement, LNG supplies will be made and delivered on a basis commencing from 2028 to 2048.

Similar to the earlier agreement of 1999, the LNG volumes under the new contract shall also be off-taken by GAIL (India) Limited (60%), Bharat Petroleum Corporation Limited (10%), and Indian Oil Corporation Limited (30%) after regasification primarily from Dahej Terminal of PLL on substantially back-to-back basis.

The agreement added, “This agreement will ensure energy security of the India and assure continued supplies of regasified LNG to major consuming sectors like fertilisers, CGD, refineries & petchem, power and other industries.”

Akshay Kumar Singh, MD & CEO of Petronet LNG Limited, said, “This agreement will provide energy security and ensure a stable & reliable supply of clean energy and help India in its stride towards greater economic development.”

Akshay added that the long-term LNG purchase agreement with QatarEnergy will strengthen the existing relationship between the two companies.

At 3:30 pm, the shares of Petronet LNG closed 4.99% higher at Rs 287 on NSE.