Petronet LNG Unveils Rs. 40,000 crore Investment Plan
Petronet LNG Ltd. (PLL), an Indian oil and gas company formed by the Government of India to import Liquefied Natural Gas (LNG) and set up LNG terminals in the country has planned to invest of Rs 40,000 crore over next 4-5 years.
Petronet plans to utilize the investment in setting up a propane dehydrogenation plant, and floating LNG import facility. The company also plans for addition of domestic LNG import capacity and investing in overseas supply sources.
Details of the 40,000 Cr Investment Planned by Petronet LNG
Petronet LNG has planned to make an investment of Rs. 12,500 crore to build a propane dehydrogenation plant. This plant will be equipped to convert imported feedstock into propylene. This set of investment is planned as the company seeks to enter the petrochemical business.
Further, the company will invest Rs. 1,600 crore to construct a floating LNG import facility at Gopalpur, Odisha.
Petronet will make another investment of Rs 17,000 crore in domestic LNG import capacity addition and petrochemical foray.
Under the capacity addition plan some of the projects include investment of Rs. 600 crore in raising the capacity of Dahej LNG import terminal in Gujarat to 22.5 MTPA from current 17.5 MTPA. Petronet will invest Rs 1,250 crore for the construction of storage tanks and bays for truck loading of LNG. Petronet also plans to expand its existing LNG terminal in Kochi, Kerala, by investing Rs. 1,700 crore.
Petronet will also be investing in overseas projects such as gas fields that feed into plants turning the fuel into LNG and liquefaction plants.
Thoughts behind the planned Investment for LNG by Petronet LNG
LNG is natural gas cooled to turn it into liquid for ease of transportation via ships. It is expected that in next 10 years the share of LNG in India’s gas consumption could rise to 70% from the current 50%.
Petronet, currently operates two LNG terminals in India accounting for about 53% of the nation’s existing 42.5 MTPA import capacity. At present India’s domestic natural gas production barely meets half the demand of power, fertilizer and CNG sectors and the rest is imported in the form of LNG.
Also the Government has set a target to raise the share of natural gas in India’s energy mix to 15% by 2030 from the current 6.3% to cut its carbon footprint.
About Petronet LNG Ltd.: Petronet is a joint venture company of Oil & Natural Gas (ONGC), Indian Oil (IOCL), GAIL (India), and Bharat Petroleum (BPCL).