Petronet operates the 17.5 mtpa Dahej LNG terminal in western Gujarat state and the 5 mtpa Kochi terminal in Kerala.
The company recently launched two 180,000 cbm LNG tanks at the Dahej terminal. These two tanks add to six existing storage tanks at the Dahej terminal with a total capacity of 932,000 cbm.
In addition, Petronet is currently expanding its Dahej LNG terminal with about 5 mtpa of new capacity,
The company’s executives confirmed during Petronet’s earnings call on October 24 that Petronet expects the 5 mtpa additional capacity at the Dahej terminal to be available by March 2025.
During the July-September quarter, the 17.5 mtpa Dahej LNG terminal processed 225 TBtu of LNG, up compared to 210 TBtu in the same quarter last year.
Dahej volumes dropped compared to the record 248 TBtu of LNG in the previous quarter.
LNG demand growing
During the call, Petronet’s management discussed the spot LNG pricing environment and the expectation for the Dahej terminal’s utilization in the second half of this year.
One of the company’s executives said LNG demand is growing in India because spot prices are “moderate” at present.
“And it is likely to remain moderate, but I can’t predict for the winter season. It may be slightly higher,” he said.
“And if crude also remains at this level, which is now at $74-$75, the long-term prices will be down,” he said.
He said Petronet LNG hopes Indian LNG consumption will continue to increase in the second half.
“We are expecting that it should be at the same range of 95 percent to 100 percent capacity utilization of Dahej,” he said.
In talks with offtakers for additional Dahej regas capacity
Petronet’s executive also said that the company is in talks with its offtakers and “anyone else” if the offtakers are not taking the additional full 5 mtpa capacity at Dahej.
The offtakers include GAIL and IOCL.
“Maybe that 5 million tonnes will not be booked, but we want to keep some capacity to ourselves,” he said.
He said Petronet can “utilize this capacity with other volumes coming in like short-term, spot volumes.”
“So hopefully, we will be utilizing this 5 mtpa addition next year. This will automatically add to our bottom line, and profitability will increase next year, ” the executive said.
Kochi pipeline to be completed next year
Petronet’s Kochi terminal is currently operating at about 22 percent capacity due to a lack of pipeline connectivity.
GAIL is building the Kochi-Bangalore pipeline.
Petronet’s executive said the company expects the Kochi-Bangalore pipeline to be completed by March or April next year.
Following completion, this will substantially boost the utilization of the facility.
India’s LNG imports continued to rise in September, according to preliminary data from the oil ministry’s Petroleum Planning and Analysis Cell.
The country imports LNG via seven facilities with a combined capacity of about 47.7 million tonnes per year.
Besides Petronet’s Dahej and Kochi terminals, the facilities include Shell’s Hazira terminal, and the Dabhol LNG, Ennore LNG, Mundra LNG, and Dhamra LNG terminal.
The Chhara LNG import terminal in Gujarat should also receive its commissioning cargo later this year.
