Friday, May 13, 2022

Petronet LNG to invest Rs 40,000 cr over 4-5 yrs, including in overseas gas fields: CEO

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  • Petronet LNG plans to venture into the petrochemical business by investing Rs 12,500 crore in a Propane Dehydrogenation Plant that will convert imported feedstock into propylene
  • The company is also planning to set up a floating LNG import facility at Gopalpur in Odisha at a cost of Rs 1,600 crore

New Delhi: Petronet LNG is planning to invest Rs 40,000 crore over next 4-5 years, including in overseas supply sources, said its Chief Executive Officer (CEO) AK Singh on Thursday. Addressing the media, Singh said that Petronet LNG plans to venture into the petrochemical business by investing Rs 12,500 crore in a Propane Dehydrogenation Plant that will convert imported feedstock into propylene. And it is also planning to set up a floating LNG import facility at Gopalpur in Odisha at a cost of Rs 1,600 crore, the top official added.

Petronet LNG operates the world’s largest liquefied natural gas (LNG) import terminal. Around 50 percent of the company’s shares are held by state-run oil PSUs like Indian oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), GAIL (India) Ltd and Oil & Natural Gas Corporation (ONGC).

Petronet LNG looking to invest in gas fields overseas

The CEO said that the company is looking at investing in gas fields overseas that feed into plants turning the fuel into liquid (LNG) and liquefaction plants. “We always evaluate good opportunities for overseas investment. If it is beneficial for the country (and) if we find it a better option, definitely we will go for it,” said Singh.

He added that the company will invest Rs 17,000 crore in augmenting domestic LNG import capacity and for foraying into petrochemical business. “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. The Dahej import terminal is the largest in the world and the port will host a third jetty where propane, ethane and LNG can be imported,” said Singh.

“Petronet, which operates a 5-MT a year import facility at Kochi in Kerala, will set up a 4-MT-a-year floating storage and regasification (FSRU)-based LNG import facility off the Gopalpur port that later will be turned into a land-based terminal with a higher 5 million tonne capacity, with scope for raising it in future,” said Singh.

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