IRM Energy shares surge 14% after long-term LNG deal with Shell Energy India

Shares of IRM Energy jumped as much as 14 percent on March 27 after the company announced a long-term agreement with Shell Energy India for the supply of Regasified Liquefied Natural Gas (RLNG). The deal, which spans five years, is expected to enhance IRM Energy's sourcing portfolio, ensuring stable and affordable gas supplies for its industrial and commercial customers.

IRM Energy Inks RLNG Supply Deal with Shell

In an exchange filing on March 26, IRM Energy revealed that it had successfully executed a five-year RLNG purchase agreement with Shell Energy India Pvt. Ltd. Under the deal, the company will procure a total of 1.23 crore MMBtu of RLNG, equivalent to approximately 326.84 mmscm at 9500 k/cal Gross Calorific Value (GCV).

The company highlighted that the partnership will play a vital role in ensuring consistent RLNG availability, boosting its ability to serve industrial and commercial clients with reliable and cost-effective energy solutions.

"This agreement will enable IRM Energy to secure a stable and affordable gas supply for its Industrial and Commercial customers, thereby strengthening our commitment to ensuring reliability and efficiency in the gas business," the company stated in the filing.

IRM Energy also emphasized that collaborating with Shell, a global leader in LNG supply, will bolster its ability to offer cleaner fuel solutions, contributing to India's energy security and sustainability goals.

Manoj Kumar Sharma, CEO of IRM Energy, hailed the agreement as a milestone for the company, reinforcing its commitment to delivering sustainable and affordable energy solutions.

"This agreement is a testament to our commitment to providing sustainable and affordable energy solutions to our valued customers. With this partnership, we are confident in ensuring stable gas supplies that will support economic development and clean energy adoption," Sharma said.

The deal is expected to enhance IRM Energy’s service capabilities by leveraging Shell's global expertise in LNG supply. The company aims to support industrial clients in their transition towards greener energy alternatives, thereby helping reduce their carbon footprint.

Stock Price Trend

IRM Energy’s stock surged 14 percent to hit an intraday high of ₹303 following the announcement. Despite the sharp gain, the stock remains over 55 percent below its record high of ₹635, reached in April 2024. It also recently touched its 52-week low of ₹235.90 earlier this month.

Even with the recent rally, shares of IRM Energy are still trading 43 percent below their issue price of ₹505. However, the stock has added over 11 percent in March so far, breaking a five-month losing streak. The stock had shed 17 percent in February, 9 percent in January, 7 percent in December, 6.5 percent in November, and 8.3 percent in October.

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