Deal between Petronet LNG and Tellurian was signed in presence of Prime Minister Narendra Modi.

Shares of Petronet LNG surged as much as 13.17 per cent to Rs 302 but erased gains and fell as much as 7.40 per cent to Rs 247.10 on the BSE. Petronet LNG signed a memorandum of understanding with US-based Tellurian Inc. on Saturday at Houston, USA. On the National Stock Exchange, Petronet LNG rose as much as 12.21 per cent to Rs 299 and fell as much as 7.41 per cent to Rs 246.70. From intraday high levels, the stock dropped 17.5 per cent, underperforming the Nifty and Sensex which were up over 3 per cent each.

"Petronet LNG and its affiliates will like to explore possibility of purchase of up to 5 Million Tonnes Per Annum (5 MTPA) of liquefied natural gas (LNG) from Driftwood project concurrent with equity investment. The process is subject to due diligence and approval of respective board of directors," the company said in an exchange notification on Sunday.

Petronet will take an equity investment in Tellurian's Driftwood project in Louisiana, they said, without providing financial details. The companies said they would try to finalize the deal by March 31, 2020.

The memorandum of understanding between Petronet LNG and Tellurian was signed under the presence of Prime Minister Narendra Modi. After the deal PM Modi tweeted: "It is impossible to come to Houston and not talk energy! Had a wonderful interaction with leading energy sector CEOs. We discussed methods to harness opportunities in the energy sector. Also witnessed the signing of MoU between Tellurian and Petronet LNG."

It is impossible to come to Houston and not talk energy!



Had a wonderful interaction with leading energy sector CEOs. We discussed methods to harness opportunities in the energy sector.



Also witnessed the signing of MoU between Tellurian and Petronet LNG. pic.twitter.com/COEGYupCEt — Narendra Modi (@narendramodi) September 22, 2019

As of 12:15 pm, Petronet LNG shares traded 5.20 per cent lower at Rs 252.60.

(With inputs from Reuters)