Page 12 - GLNG Week 37 2022

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India’s Petronet to back LNG

import expansion

INDIA INDIA’S Petronet LNG is set to invest INR400bn those backing the concept claiming that this
($5bn) over a period of five years to develop would meet growing gas demand in the eastern
existing infrastructure and offer increased LNG and central part of the country.
import capacity. India, through Petronet, obtains its LNG
Some of the existing projects involved are primarily from Qatar and Australia. The bulk of
located primarily in Dahej in Gujarat and Kochi processed LNG is moved from import terminals
in Kerala on the west coast of the subcontinent, by GAIL (India), Indian Oil Corp. (IOC) and
with a limited percentage of the funding also ear- Bharat Petroleum Corporation Ltd (BPCL) for
marked for new ventures. distribution to end users. GAIL, IOC and BPCL
Petronet is India’s largest importer of natural each hold a 12.5% stake in the firm.
gas in all forms, but according to sources in the Addressing talk of an expansion into the
country, it is also seeking to expand operations global petrochemicals business, Petronet has
into petrochemicals. indicated that a facility centred on propane
According to the latest annual report released imported through the Dahej LNG terminal was
by the firm, it is aiming at achieving an annual likely to serve as its initial base of operations.
turnover of around $12.55bn over the next five A more vague comment that Petronet is also
years and annual profit after tax of $1.25bn on “exploring the option of setting up a propylene
investments of $5bn. derivative complex in the near future”, mean-
Facilities at Petronet’s terminals currently while, came with limited details and wihout any
send gas mainly for use in regional power plants date on any facility being completed.
and India’s fertiliser trade. Further statements on possible wider regional
The upgrades to existing infrastructure are investment included mention of the neighbour-
expected to result in the capacity of the Dahej ing countries of Sri Lanka and Bangladesh.
terminal in India’s north-west reaching 22.5mn As such, Petronet is reportedly “exploring
tonnes per year (tpy) of LNG. This will be the business opportunities in LNG value chain
achieved largely thanks to an additional pair of in Sri Lanka and in the process of collaborat-
storage tanks that will be added to the existing ing with potential counterparts, including the
six at the site. government of Sri Lanka”, in addition to con-
At the smaller Kochi terminal in the south of sidering a bid for an LNG terminal in southern
the country, Petronet currently has a more lim- Bangladesh.
ited capacity. Current figures for the Kochi site No details of substance were offered in the
indicate that it can process just 5mn tpy of LNG . annual report, but in recent months, Sri Lanka
An additional Petronet terminal on India’s in particular has been hedging its bets in lean-
east coast is also reportedly being discussed, ing towards deals with India to avoid increased
although few details are known. claims of Chinese takeovers across much of its
India’s government is targeting more than infrastructure.
doubling the amount of gas in the domestic Bangladesh too has been spotlighted of late,
energy mix to 15% by 2030. Currently, just 6.7% with China looking to invest, so may opt for a
of India’s energy is sourced from natural gas. regional partnership rather that the so-called
There has been speculation on a possible debt-trap clauses attached to many deals offered
floating LNG (FLNG) import facility too, with by China in the region.™

P12 www. NEWSBASE .com Week 37 16•September•2022