GAIL Shares Surge Over 1.8% On CONCOR’s LNG Agreement

Mumbai: July 10: GAIL (India) Limited shares traded up by 1.80% intraday to Rs 173.26 on BSE, Friday morning continuing their rise after state-owned gas utility entered into a long-term contract with Container Corporation of India (CONCOR) to establish liquefied natural gas (LNG) dispensing station at CONCOR’s inland container depot (ICD) facility in Ahmedabad. 

At the BSE, the stock opened at Rs 171.00 against its previous close of Rs 170.20. The scrip traded with a high of Rs 174.47 and low of Rs 171.00 (matching its opening print) so far on Friday. Its volume-weighted average price for the day is Rs 173.42 and currently, the counter is retaining most of its gains. 

GAIL share price weekly snapshot 

The following graph shows GAIL’s share price falling to its weekly low of around Rs 168.70 on Jul 08 before rebounding to end near Rs 170.80 on Jul 09. The stock is up again on Friday on the news of the agreement with CONCOR. 

On CONCOR’s LNG agreement 

Container Corporation of India (CONCOR) has entered into an agreement with GAIL (India) Ltd. for setting up of LNG dispensing station at CONCOR’s own ICD facility at Khodiyar in Ahmedabad, sources said. Traders would now want to hear from the company on its estimated cost for setting up the facility and timeline. 

This agreement comes as CONCOR is looking to create a green container logistics corridor at its smart cities. 

The pact is part of push by several state-owned firms to invest in green fuels infrastructure at logistics and freight hubs across India. 

Terms of the agreement 

Under the long-term pact, CONCOR will provide the land parcel, within its busy Ahmedabad terminal. The area will be around 3,000 square metres. It will also extend utility connectivity required for running of the LNG dispensing station. 

In return, GAIL (India) Ltd. will have exclusive operational rights over the dispensing station and will invest in creating retail LNG outlet infrastructure. 

The LNG dispensing station would be operated 24×7 and cater to requirements of CONCOR trucks as well as open market commercial vehicles visiting the terminal. Towards ensuring commerciality of operation, CONCOR would commence operation of a fleet of 15 LNG based commercial vehicles from the first year of operations itself. 

The agreement was executed between CONCOR’s Mani Bhushan Singh, General Manager (Projects and Services) and GAIL’s Hitendra Kumar Garg, Executive Director (Marketing) in the presence of Swayambhu Arya and other senior officials from both the PSUs on Thursday July 8. 

“The LNG dispensing station at Ahmedabad terminal is being set up pursuant to memorandum of understanding entered into between CONCOR and GAIL on April 20 for setting up LNG infrastructure across CONCOR’s terminals pan India. Khodiyar will be the first terminal to be developed,” said sources privy to development. 

GAIL has been expanding its downstream LNG retailing business, in addition to its core gas transmission business. 

The Ahmedabad station adds another outlet to GAIL’s growing network of city gas retail outlets. Net profit of the firm dropped 21% quarter-on-quarter to Rs 1,262 crore in March 20: 26 quarter ended compared to Rs 1,602 crore in the preceding three-month period. For FY26, net profit stood at Rs 7,582 crore as against Rs 12,463 crore in FY25. GAIL’s market cap is around Rs 1.12 lakh crore. 

This development allows CONCOR to offer LNG fuel for its fleet without investing any capital since GAIL would be setting up the infrastructure. CONCOR will only be offering the land parcel and utilities it owns. 

Updates on estimated cost and timeline for setting up the LNG dispensing station would be closely followed by investors and analysts. The exchange filing made by the company on Wednesday did not elaborate on these details. 

Source

• https://www.nseindia.com/get-quote/equity/GAIL/GAIL-(India)-Limited