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Home >Companies >News >Petronet to invest 187 bn in next five years, set up 1,000 LNG stations

Petronet to invest 187 bn in next five years, set up 1,000 LNG stations

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Petronet plans to set up 20-25 LNG stations in the initial 1-2 years, but a larger addition is likely thereafter with 3.5 million mtpa LNG volumes.

  • The company has planned a 67 billion budget to expand its 17.5-million-tonne per annum (mtpa) Dahej terminal on the West coast to 22.5 mtpa, building a new jetty and Liquefied Natural Gas (LNG) tanks at Kochi terminal and a new terminal on the East coast

MUMBAI: India's top gas importer Petronet LNG will invest 187 billion over five years to expand infrastructure as well as business, said a senior official from the company.

MUMBAI: India's top gas importer Petronet LNG will invest 187 billion over five years to expand infrastructure as well as business, said a senior official from the company.

The company has planned a 67 billion budget to expand its 17.5-million-tonne per annum (mtpa) Dahej terminal on the West coast to 22.5 mtpa, building a new jetty and Liquefied Natural Gas (LNG) tanks at Kochi terminal and a new terminal on the East coast. Of this, it will spend 44.5 billion on the Dahej terminal; 7 billion on the Kochi terminal, and 15.4 billion on the proposed East coast terminal.

The company has planned a 67 billion budget to expand its 17.5-million-tonne per annum (mtpa) Dahej terminal on the West coast to 22.5 mtpa, building a new jetty and Liquefied Natural Gas (LNG) tanks at Kochi terminal and a new terminal on the East coast. Of this, it will spend 44.5 billion on the Dahej terminal; 7 billion on the Kochi terminal, and 15.4 billion on the proposed East coast terminal.

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It has also planned an 80 billion capex to set up 1,000 LNG stations over five years and 40 billion on setting up 100 compressed biogas plants over three years.

The company plans to set up 20-25 LNG stations in the initial 1-2 years, but a larger addition is likely thereafter with 3.5 million mtpa LNG volumes.

The company, however, does not find investing in overseas projects lucrative in the current liquefied natural gas surplus market.

The company was earlier planning to invest in projects in Sri Lanka, Bangladesh, Qatar, and Tellurian's Driftwood LNG project.

"Right now, investment in LNG terminals anywhere outside India is not very lucrative because LNG is available at very low prices it is only recently that prices have increased... availability of LNG is plenty," Vinod K Mishra said post the company's March quarter earnings.

Mishra said higher domestic supplies could hit costly spot LNG imports in the short term, but would not impact imports in the long term as India's gas consumption is expected to jump.

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