Petronet eyes 2025 launch of new $210mn LNG terminal: press
Petronet's floating LNG import terminal in the Indian state of Odisha could achieve first gas in three years time, the Press Trust of India reported on April 14.
The project was first announced in Petronet's 2020-21 annual report and would currently involve building a 4mn metric tons/year floating storage and regasification unit (FSRU) terminal. The FSRU could later be upgraded to become a permanent LNG import installation.
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Petronet has selected a site in Gopalpur port for the terminal to process LNG fuel via the east Indian state of Odisha. It already has two LNG import facilities at Dahej (17.5mn mt/yr) and Kochi (5mn mt/yr). Petronet's LNG terminals represent more than half of India's overall 42.5mn mt/yr of regasification capacity.
The company's CEO Ashkay Kumar Singh has said he expects LNG buyers to sign more long-term contracts, due to higher spot prices, which had provided a strong justification for investment in new-build import terminals. He predicts India will need significantly more LNG terminals as the share of gas in its energy mix rises toward 15% in 2030.
Petronet is also funding an expansion of Dahej to 22.5mn mt/yr with two additional storage tanks, and will also invest $1.6bn in a new propane hydrogenation plant to convert LNG feedstock into propylene. The Dahej petrochemical jetty is expected to launch in 2025.
Global LNG prices have rallied to multi-year highs as economies have resumed normal service following Covid-19, and have climbed even higher in 2022 due to pressures caused by the Ukraine war. India is the world's fourth-largest LNG buyer and its purchases of the supercooled fuel are expected to accelerate in coming decades. Shell estimates that from 2020 to 2040 India will need an extra 35 to 45mn mt/yr of LNG.