Indian Oil Corporation gains on signing deals with Abu Dhabi Gas Liquefaction, TotalEnergies

Indian Oil Corporation is currently trading at Rs. 97.53, up by 0.16 points or 0.16% from its previous closing of Rs. 97.37 on the BSE.

Indian Oil Corporation
Indian Oil Corporation

The scrip opened at Rs. 98.00 and has touched a high and low of Rs. 98.34 and Rs. 97.17 respectively. So far 1265716 shares were traded on the counter.

The BSE group ‘A’ stock of face value Rs. 10 has touched a 52 week high of Rs. 101.44 on 10-Jul-2023 and a 52 week low of Rs. 65.20 on 29-Sep-2022.

Last one week high and low of the scrip stood at Rs. 99.26 and Rs. 95.80 respectively. The current market cap of the company is Rs. 137823.29 crore.

The promoters holding in the company stood at 51.50%, while Institutions and Non-Institutions held 38.45% and 10.05% respectively.

Indian Oil Corporation (IOC) has signed deals to import liquefied natural gas (LNG) from UAE’s Abu Dhabi Gas Liquefaction Co (ADNOC LNG) and TotalEnergies Gas and Power (TotalEnergies) of France on a long-term basis. A ‘Head of Agreement’ (HoA) (was signed) between Indian Oil Corporation and TotalEnergies to establish a long-term LNG sale and purchase agreement (SPA).

The company has signed a deal to import 1.2 million tonnes per annum of LNG from Adnoc-LNG for 14 years starting in 2026. The deal with TotalEnergies is for the import of 0.8 million tonnes a year of LNG for 10 years starting in 2026. This is the first long-term deal TotalEnergies has signed with an Indian company. Also, this is the first time an Indian company has signed a long-term LNG import deal with Adnoc.

TotalEnergies is the third largest LNG supplier in the world and would be supplying LNG to IOC from their diversified portfolio across the world. IOC is sewing new deals in line with the government goal of increasing the share of natural gas in the energy basket to 15 per cent by 2030 from the current 6.2 per cent. Long Term LNG contracts play an important role in balancing out the inherent volatility of spot LNG market and thus make it an affordable and reliable LNG supply.

Indian Oil Corporation is the largest enterprise in the country and the foremost ranked Fortune Global 500 Company in India and has presence in the complete hydrocarbon value chain from downstream refining & marketing, pipeline transportation, Petrochemicals, E&P and Gas Marketing.

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