Petronet to invest Rs 40,000 crore in overseas LNG plants

Petronet LNG Ltd, the operator of the world’s largest liquefied natural gas (LNG) import terminal, will invest Rs 40,000 crore over next 4-5 years, including in overseas supply sources, its CEO A K Singh said.

Petronet plans to make foray into the petrochemical business by investing Rs 12,500 crore in a Propane Dehydrogenation Plant that will convert imported feedstock into propylene, as well as set up a floating LNG import facility at Gopalpur in Odisha at a cost of Rs 1,600 crore, he told reporters here.

The firm, which had last year allowed an initial non-binding agreement to invest $ 2.5 billion in US energy upstart Tellurian’s LNG project in Louisiana in return for gas supplies for 40 years lapse, will look at investing in overseas projects such as gas fields that feed into plants turning the fuel into liquid (LNG) and liquefaction plants.

LNG is natural gas cooled to -162 degrees Celsius to turn it into liquid for ease of transportation via ships. India’s domestic natural gas production barely meets half the demand of power, fertilizer and CNG sector and the rest is imported in form of LNG.

Petronet will also invest Rs 17,000 crore in domestic LNG import capacity addition and petrochemical foray. The investment includes Rs 600 crore in raising the capacity of the Dahej LNG import terminal in Gujarat to 22.5 million tonne per annum from the current 17.5 million tonne, Rs 1,245 crore in building an additional storage tank and bays for truck loading of LNG.

Petronet LNG Ltd, also reported its highest quarterly net profit of Rs 1,159.46 crore as a surge in prices boosted margins. This is a 42% jump in net profits against same period last year. Revenue from operations was up 72 per cent at Rs 12,597.22 crore. For the first nine months of the current fiscal, the company reported a net profit of Rs 2,647.13 crore on a revenue of Rs 32,008.20 crore. This compared with Rs 2,301.31 crore net profit a year back and Rs 2,939.23 crore net profit in full 2020-21 fiscal.

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