Petronet LNG to invest $2. 6 bn in local infrastructure

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NEW DELHI, June 9 - Petronet LNG will invest $2.6 billion over five years to expand the local infrastructure as capitalizing on foreign projects is 'not lucrative' in the current surplus of liquefied natural gas, said its head of finance.

Right now, the investment in LNG terminals outside India is not very lucrative because LNG is only price updated over a short period from the time has arrived. The supply of LNG is adequate, said Vinod K Mishra during an analyst call after the company announced its March quarter earnings.

At the moment, he said there was no financial incentive to invest in overseas projects to lock LNG supplies.

The company had previously planned to invest in projects in Sri Lanka, Bangladesh, Qatar and Tellurian’s Driftwood LNG project.

India wants to increase the share of gas in its energy mix from 6.2% to 15% by 2030 and it has given its local output.

Mishra said that high domestic supplies would impact expensive spot LNG imports in the long term, but would not effect imports in the short term as India's gas consumption is expected to jump.

Petronet plans to invest 66.9 billion rupees to expand its 17.5 million-tonne terminal in the East Coast to 22.5 mtpa, build a new terminal along the West coast and build new Dhafi and LNG tanks in Dahej and Kochi, he said.

In the new phase, Mishra said the Gopalpur terminal will be extended to 20 mtpa by mid-2023 while a new 5 mtpa Dahej terminal on the East Coast is expected to be completed by 2025.

Petronet, which was originally planning to sell gas to fuel stations owners, will invest 80 billion rupees in setting up its own 1000 LNG fuel stations, said he. It is to invest 40 billion rupees in 500 bio gas generation plants over 3 years.

A.K., Chief Executive of A.K. earlier in the day, canceled. Singh said that company was talking to multiple sellers, including India, to buy fuel at reasonable rates for the price-sensitive Pakistani market. And what are your best decisions.

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