Petronet LNG hit a new 52-week high at Rs.262 with volumes rising over 1.5 times.

The market is happy because starting today, the company will get fuel from Qatar’s gas producer RasGas. The good news here is that this gas will be supplied at almost 50% of the cost originally agreed upon. It will also not have to pay the Rs.12,000-crore penalty for lower off-take in 2015.

The company said that Petronet will get LNG at $6-7 per million British thermal unit (mBtu). Under the original contract signed between the two companies in 1999, Petronet would get LNG at $12-13 per mBtu. Supplies began in April 2004. The new contract is effective January 1, 2016 and ends in 2028.

Under the new contract, the price for the buyer will be governed by market dynamics based on a crude price linked formula.