The company has also tied up additional regasified liquefied natural gas (RLNG) volumes of around 1 mmscmd (million metric standard cubic meters per day) on a term basis at competitive prices with one of its major suppliers. "The revision and signing of additional volumes shall have a positive impact on profitability of the company," IGL said.Earlier in November, GAIL had reduced domestic gas allocation by 20% to the company, which impacted IGL's profit margins. Following the development, shares of IGL rose 3.75% to ₹422.95 on Thursday before closing at ₹418.70, up 2.71% from the previous close.As per guidelines by the oil ministry, domestically produced APM natural gas is to be allocated to city gas distribution companies for priority segments, specifically domestic PNG and CNG (transport). The policy states that the supply of domestic gas to CGD entities will be made only up to the quantity available and allocated to GAIL for these segments.The government in October and November last year had cut supplies of domestic gas to city gas retailers by as much as 40% in view of limited output, prompting city gas retailers to hike CNG prices by ₹2-3 per kg.

GAIL Increases Domestic Gas Allocation to IGL by 31%

2656,2246,418,308,3125,4966

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