HPCL intends to start operations at the Chhara LNG facility; morning gains were lost by shares

 HPCL intends to start operations at the Chhara LNG facility; morning gains were lost by share

HPCL intends to start operations at the Chhara LNG facility; morning gains were lost by shares

Despite being a latecomer to the gas industry, HPCL intends to open for business in the coming months at Gujarat's Chhara LNG import facility.

In only one month, the price of HPCL's shares has risen by 37.59 percent.

Shares of Hindustan Petroleum Corporation Limited (HPCL), which had gained two percent throughout the day, erased morning gains on December 1 and were down. In the next years, HPCL intends to start up at the Chhara LNG import facility in Gujarat, which has a capacity of 5 million tonnes annually. On Thursday, a senior corporate executive said that they had already received offers to rent the capacity from six to seven parties.

On the NSE, HPCL shares were down 0.4% as of 12.30 pm, trading at Rs 346 a share.

The 40-kilometer pipeline that connects the terminal to the current network was not ready when it came time for commissioning, even though the terminal was mechanically finished in March.

"The LNG terminal will be put into service within the next few months," said Amit Garg, director of marketing at HPCL.

HPCL, a corporation specializing in oil refining and gasoline marketing, entered the gas industry quite late. It constructed the Chhara plant in Gujarat's Gir-Somnath area to collect natural gas, which is cryogenically chilled to a liquid condition.

Before being piped to companies for use as feedstock, the liquefied gas will be transformed back into a gaseous condition at the terminal. HPCL entered the gas industry quite belatedly.

OMC's share price has climbed by 37.59 percent during the last month. By contrast, investors have received a return of 6.78% during the same time on the local index, Nifty 50.