One's loss is often another's gain. The strong performance of Petronet LNG, India's major gas importer and regasifier over the past year bears this out. Making the most of the sharp decline in production from Reliance Industries' KG-D6 fields last year, Petronet LNG stepped on the gas, quite literally.

Volumes regasified by the company increased by around 10 per cent in FY 11, and helped the company grow profits by around 53 per cent. Robust volume growth (up more than 40 per cent) continued in the latest June quarter too, resulting in the company more than doubling its profits on a year-on-year basis.

The growing demand for the commodity from various sectors including power, fertilisers, refineries, petrochemicals and city gas distributors, ensured that Petronet had a ready market for its wares, notwithstanding the relatively high cost of imported gas.

Not surprisingly, the stock has had a stellar run on the bourses outperforming its peers in the oil and gas space and also the broader market by a wide margin.

The company is bullish on the future demand for imported gas and is expanding capacities of its existing terminal at Dahej (from 10 mmtpa to 15 mmtpa) and the proposed terminal at Kochi (from 2.5 mmtpa to 5 mmtpa). Besides, it also plans to set up a new terminal on the country's East Coast.

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