GAIL (India) lost 1.17% to Rs 366 at 9:16 IST on BSE, with the stock sliding on profit taking after Monday's 4.81% gains after the company said it has signed a Memorandum of Understanding with Chubu Electric Power Co., Inc., Japan on 21 March 2014.
The announcement was made after market hours on Monday, 24 March 2014.
Meanwhile, the S&P BSE Sensex was down 50.24 points or 0.23% at 22,005.24.
On BSE, so far 7,556 shares were traded in the counter as against average daily volume of 86,000 shares in the past two weeks.
The stock hit a high of Rs 367 and a low of Rs 364 so far during the day.
Shares of GAIL (India) had surged 4.81% to settle at Rs 370.35 on Monday, 24 March 2014.
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Under the MoU, GAIL (India) and Chubu Electric Power Co., Inc., Japan (Chubu) shall mainly explore possibilities for collaboration in the area of joint LNG procurement. Besides, the two companies will also seek to collaborate on shipping optimization, GAIL (India) said in a statement.
Chubu and GAIL are, both, large LNG importers having considerable synergy between their LNG business profiles. It is assessed that with GAIL joining hands with Chubu for jointly pursuing LNG procurement and other allied business opportunities, such a collaboration shall augment GA1L's efforts to aggressively source LNG volumes on competitive terms and would be a win-win proposition for both companies, GAIL (India) said.
GAIL's latest move is also in sync with the company's recent efforts in establishing and promoting Asia LNG Forum, a sort of Asian LNG buyers' club. GAIL is also actively working towards establishing a regional gas trading hub for Asia as well as an Asian gas index.
This MoU with Chubu is yet another effort by GAIL towards bridging the gap in demand supply of natural gas in the Indian market, GAIL (India) said. This is in addition to other initiatives of GAIL towards LNG sourcing, creating LNG regasification infrastructure, reserving liquefaction tolling capacity in overseas projects and augmenting transmission capacity significantly over the next few years. GAIL will continue to make efforts to tie-up affordable LNG in its portfolio to meet the rapidly growing energy demand of the Indian market.
Chubu is one of the largest importers of LNG in Japan, and has significant presence across gas value chain including upstream assets, liquefaction capacity and regas capacity.
GAIL (India)'s net profit surged 30.7% to Rs 1679.40 crore on 28.1% growth in net sales to Rs 15980.62 crore in Q3 December 2013 over Q3 December 2012.
There was an exceptional income of Rs 344.95 crore in Q3 December 2013 on account of profit on sale of long term investments.
GAIL (India)'s subsidy sharing burden declined 99.81% to Rs 1.32 crore in Q3 December 2013 over Q3 December 2012.
GAIL (India) is India's flagship gas transmission and marketing company with global footprints. The Government of India (GoI) holds 57.34% stake in GAIL (India) (as per the shareholding pattern as on 31 December 2013).
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