Petronet LNG well positioned to exploit the growth opportunities
Petronet LNG (Idirect Code: Petlng) is among the major players in the Indian energy sector and is promoted by ONGC, Indian Oil, GAIL and Bharat Petroleum. The company was formed to import and set up liquefied natural gas (LNG) terminals in India since the country has the shortage of natural gas.
As the share of natural gas is growing in India’s energy needs due to its cost-effectiveness and environment friendliness, natural gas reserves are being developed throughout the world. The company seems well positioned to exploit opportunity from this ‘fuel of the future’.
Petronet has also inked pact with French company Gaz de France (GDF).
The company has a liquefied natural gas terminal at Dahej in Gujarat and is in the process of setting up another at Kochi. The company has a pact with Qatar's RasGas as the preferred LNG supplier for 5.0 mmtpa (million metric tonnes per annum) at Dahej and 2.5 mmtpa at Kochi.
The company posted a 60 per cent rise in net profit for the year 2006-07 to Rs 313.25 crore compared to last year. Petronet LNG’s income rose 44 per cent to Rs 5,545.54 crore during the same period. Petronet LNG is negotiating with the World Bank arm — International Financial Corporation (IFC) — and Asian Development Bank-KfW combine to fund its expansion plans.
The company also supplies gas to the Dabhol Power Project.
According to the company, once its pipeline between Dabhol and Dahej is completed, it would be able to supply 3 million cubic meters of gas per day to the project and make substantial savings on its import bill. The company will supply gas to Dabhol till September 2009.
During the year 2006-2007, the company processed additional 12 spot cargoes and was able to increase its production capacity by 30 per cent over its installed capacity of 5 million tonne per annum through de-bottlenecking.