Petronet LNG’s shares bounced back into the green on Friday, January 3, following a significant drop in the previous session. The rebound came after the company issued a clarification addressing the concerns raised by the Petroleum and Natural Gas Regulatory Board (PNGRB) through an exchange filing on January 2, 2025.
On January 3, the shares today opened at Rs 331.55 apiece and climbed to an intraday high of Rs 334.25 during Friday’s trading session. As of 12:33 pm IST, the company’s stock is trading at Rs 331.10 apiece, up by 1.07 on NSE.
Clarification calms market sentiment
In its regulatory filing, Petronet LNG responded to reports on PNGRB’s website and related media coverage regarding LNG tariffs. The company stated:
“The said published paper itself mentions that as per the existing provisions of PNGRB Act 2006, Regulating LNG Terminals or its Tariff does not fall under the purview of PNGRB.”
“As such any regulation for regulating LNG Terminals and its Tariff would require amendment(s) in the PNGRB Act 2006.”
“PLL’s Dahej terminal offers competitive and one of the lowest Regas Charges as compared to any other terminals in the Country. Such regas charges have been fixed on the basis of Agreements between Petronet LNG Limited and various users/capacity holders.”
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“Further, LNG regas charges constitute merely around 5% to 6% of delivered gas price to the consumers. Also, the regas tariff in the country is market determined and there is no monopoly in regas terminal business.”
Petronet LNG: Reasons behind the sharp decline in January 2
The steep fall in Petronet shares on Thursday (January 2) stemmed from PNGRB’s criticism of the company. The regulator accused Petronet of annual tariff hikes at its Dahej terminal without passing on the benefits of increased capacity to consumers.
Adding to the negative sentiment, international brokerage firm Citi placed Petronet LNG on a 90-day negative watch.
Petronet LNG: Stock performance
Petronet LNG stock price has seen mixed movements over different time frames. As of the current update, over the past five days, the stock has tumbled by 2.18, reaching Rs 331.40 apiece.
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