India's Petronet reports slight increase in profit in October-December

Petronet LNG, India's biggest LNG importer, on January 29 reported a 0.9% year/year increase in net profit for the October-December quarter (Q3FY2024), attributed to higher LNG processed volumes.

The company's net profit reached 11.91bn rupees ($143mn) during the quarter, compared with 11.8bn rupees in the same period of the previous year. The profit was up 45.5% on a quarter/quarter basis.

Petronet LNG currently operates two land-based LNG import and regasification terminals on the west coast of India, situated at Dahej in the state of Gujarat and Kochi in the state of Kerala. During Q3, the Dahej terminal processed 218 trillion Btu of LNG, up from 154 trillion Btu in the corresponding quarter of the previous year and 210 trillion Btu in the July-September quarter (Q2FY2024).

The overall LNG volume processed by Petronet LNG in Q3 amounted to 232 trillion Btu, up from 167 trillion Btu in the previous year and 223 trillion Btu in Q2. 

Looking ahead, Petronet LNG has ambitious plans for expansion. The company aims to set up its third LNG import terminal, which will be located in east India. In December 2023, Petronet LNG took steps towards this expansion by signing binding transaction documents, including a sub-concession agreement, sub-lease deed, and port service agreement with Gopalpur Ports.

The proposed facility at Gopalpur Port in the state of Odisha will feature a floating storage regasification unit (FSRU) with an initial capacity of around 4mn tonnes/year, expandable to 5mn tonnes/year as a land-based terminal. The project, approved last year, marks Petronet's first LNG terminal on the east coast of India.