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India’s Petronet to

invest in LNG import

capacity expansion

INVESTMENT INDIA’S Petronet LNG is set to invest INR400bn
($5bn) over a period of five years to develop
existing infrastructure and offer increased LNG
import capacity.
Some of the existing projects involved are
located primarily in Dahej in Gujarat and Kochi
in Kerala on the west coast of the subcontinent,
with a limited percentage of the funding also ear-
marked for new ventures.
Petronet is India’s largest importer of natural
gas in all forms, but according to sources in the
country, it is also seeking to expand operations
into petrochemicals.
According to the latest annual report released
by the firm, it is aiming at achieving an annual
turnover of around $12.55bn over the next five
years and annual profit after tax of $1.25bn on
investments of $5bn.
Petronet’s terminals currently send gas
mainly for use in regional power plants and
India’s fertiliser trade.
The upgrades to existing infrastructure are
expected to result in the capacity of the Dahej
terminal in India’s north-west reaching 22.5mn
tonnes per year (tpy) of LNG. This will be
achieved largely thanks to an additional pair of
storage tanks that will be added to the existing imported through the Dahej LNG terminal was
six at the site. likely to serve as its initial base of operations.
At the smaller Kochi terminal in the south of A more vague comment that Petronet is also
the country, Petronet currently has a more lim- “exploring the option of setting up a propylene
ited capacity. Current figures for the Kochi site derivative complex in the near future”, mean-
Petronet’s indicate that it can process just 5mn tpy of LNG . while, came with limited details and without any
An additional Petronet terminal on India’s date on any facility being completed.
terminals east coast is also reportedly being discussed, Further statements on possible wider regional
currently send though few details are publicly known. investment included mention of the neighbour-
India’s government is targeting more than ing countries of Sri Lanka and Bangladesh.
gas mainly for doubling the amount of gas in the domestic As such, Petronet is reportedly “exploring
energy mix to 15% by 2030. Currently, just 6.7% the business opportunities in LNG value chain
use in regional of India’s energy is sourced from natural gas. in Sri Lanka and in the process of collaborat-
There has been speculation on a possible ing with potential counterparts, including the
power plants and floating storage and regasification import facil- government of Sri Lanka”, in addition to con-

India’s fertiliser ity too, with those backing the concept claiming sidering a bid for an LNG terminal in southern
that this would meet growing gas demand in the Bangladesh.
trade. eastern and central part of the country. No details of substance were offered in the
India, through Petronet, obtains its LNG annual report, but in recent months, Sri Lanka
primarily from Qatar and Australia. The bulk of in particular has been hedging its bets in lean-
processed LNG is moved from import terminals ing towards deals with India to avoid increased
by GAIL (India), Indian Oil Corp. (IOC) and claims of Chinese takeovers across much of its
Bharat Petroleum Corporation Ltd (BPCL) for infrastructure.
distribution to end users. GAIL, IOC and BPCL Bangladesh too has been spotlighted of late,
each hold a 12.5% stake in the firm. with China looking to invest, so may opt for a
Addressing talk of an expansion into the regional partnership rather that the so-called
global petrochemicals business, Petronet has debt-trap clauses attached to many deals offered
indicated that a facility centred on propane by China in the region.™

Week 36 09•September•2022 www. NEWSBASE .com P7