Petronet LNG unveils $5.3bn investment plan

India’s oil and gas company Petronet LNG has unveiled plans to invest USD 5.32bn (Rs 400bn) in several energy projects, including overseas LNG facilities and gas fields, reported the Press Trust of India (PTI).

Petronet LNG CEO A K Singh said that the investment plan will be implemented over the next four to five years. Of the total amount, the LNG import terminal operator will allocate USD 166.4M (Rs 12.5bn) to build a propane dehydrogenation plant, as it seeks to enter the petrochemical business. The plant will be equipped to convert imported feedstock into propylene. Petronet will allocate USD 21.3M (Rs 1.6bn) to construct a floating LNG import facility at Gopalpur, in the Indian state of Odisha.

Singh told PTI: “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.”

Petronet operates the LNG terminal in Kochi, Kerala, and has also set aside USD 226M (Rs 17bn) to expand the LNG import capacity in the country. The firm also plans to invest USD 79.9M (Rs 6bn) to expand the capacity of the Dahej LNG import terminal, in the Indian state of Gujarat, from the current 17.5Mtpa to 22.5Mtpa. The USD 226M investment also includes USD 15.9M (Rs 1.25bn) for the construction of storage tanks and bays for truck loading of LNG.

Petronet will also build a floating storage and regasification unit (FSRU)-based LNG import facility, off the Gopalpur port. It will have a 4Mtpa capacity. At a later stage, the new FSRU-based LNG facility will be converted into a land-based terminal, with a capacity of more than five million tonnes.

 

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