Shares of IRM Energy surged over 14 per cent on Thursday following the company’s announcement of a five-year agreement with Shell’s India unit for the supply of Regasified Liquefied Natural Gas (RLNG).

The stock reached an intraday high of Rs 303.05, marking its biggest single-day gain since April 22, 2024. However, it later moderated to trade at Rs 293.2, up 10.39 per cent, outperforming the Nifty 50 index, which rose 0.43 per cent. This rally ended a two-day decline in the company’s share price. Despite the recent jump, IRM Energy’s stock remains down 16 per cent in 2025, while the Nifty 50 has dropped by 0.27 per cent during the same period. According to BSE data, IRM Energy currently has a market capitalisation of Rs 12.11 billion.

Under the agreement, IRM Energy will procure approximately 10.23 million metric million British thermal units (MMBtu), equivalent to around 326.84 million metric standard cubic meters (mmscm) of RLNG, based on a gross calorific value of 9,500 kilocalories. This long-term supply contract is expected to enhance the company's ability to offer stable, cost-effective, and cleaner fuel solutions.

The partnership with Shell is also aligned with India's broader goals of energy security and environmental sustainability. By leveraging Shell’s expertise in LNG, IRM Energy aims to strengthen its service offerings, particularly for businesses transitioning to greener energy alternatives.

IRM Energy is a city gas distribution company operating in Banaskantha (Gujarat), Fatehgarh Sahib (Punjab), Diu & Gir Somnath (Union Territory of Daman and Diu/Gujarat), and Namakkal & Tiruchirappalli (Tamil Nadu). It supplies CNG primarily to public transport operators, as well as private vehicles including taxis, auto-rickshaws, cars, buses, and goods carriers.

News source: Business Standard