Eastern Gases Ltd - Stock Valuation and Financial Performance

Eastern Gases (EGL) is a public limited company incorporated on February 14, 1995 and exclusively deals with LPG. In the year 1998, it commenced commercial production of bottling the LPG at its plant – Durgapur, West Bengal. EGL is among the largest dedicated liquefied petroleum gas (LPG) company of India amongst private sector players. In 2002, the company entered into marketing agreement with Indian Oil Petronas Private Limited (IPPL), a joint venture company of Indian Oil Corporation Limited, India and Petronas Nasional Berhad, Malaysia (100% held by the Malaysian government), both are fortune 500 companies. IPPL has a state-of-the-art LPG terminal at Haldia with cryogenic storage of imported butane, propane & LPG. The company has licensed capacity of 30,000 MT LPG refilling per month for the plant at Durpagur, West Bengal.

The company specialises in the arrangement to send the bulk LPG orders to all industrial customers from the Haldia import-export terminal of its principle. EGL offers a range of products suitable for a wide variety of applications and a host of services for its customers. The company can offer unlimited quantities of bulk butane, propane and any composition of LPG with the online blending facility. The company is leading supplier of anhydrous ammonia, liquor ammonia and packed ammonia in cylinders.

Products and services:

1. Propane

Propane (C3) is a high-vapor pressure and highly-combustible gas, which is primarily a hydrocarbon. The chemical formula of propane is C3H8. Propane owing to its high-vapor pressure and a very low freezing temperature is the most preferred fuel in European countries. Indian industries have also started recognising the unique features and benefits of using pure-graded propane instead of LPG for their combustion processes.

2. LPG

Liquefied petroleum gas (LPG) is a mixture of propane and butane in varying percentages. Propane and butane are basically alkanes owing to which they do not react with each other chemically to form a third compound but co-exist together as a finely distributed mixture with each having its own distinct properties.

As the characteristics of any good grade LPG depends upon the percentages of propane and butane present in the mixture so care should be taken to ensure that the LPG being used has higher percentage of propane and is totally free from unsaturation. For use in packed containers, Indian standards have a maximum permissible percentage of propane as 50%

3. Butane

Butane (C4) is a low-vapor pressure and highly-combustible gas, which is primarily a hydrocarbon. The chemical formula of butane is C4H10. Butane owing to its low-vapor pressure is the most preferred for low-pressure applications like aerosol propellant, polyethylene polymerization, solvent polyethylene agent-forming for making Styrofoam, gas lighters, etc.

4. Auto LPG

5. Ammonia