Petronet LNG plans $1billion LNG terminal on east coast

Petronet LNG plans to invest $1 billion in setting up a facility to import gas in ships on the east coast. Petronet LNG is a private company in which state-owned GAIL, Oil & Natural Gas Corp (ONGC), Indian Oil and Bharat Petroleum each hold a 12.5 per cent.

 According Ashok Kumar Balyan, CEO, Petronet LNG, the terminal, which will be its third facility, will be located in either Andhra Pradesh or Orissa and have a capacity to import up to 5 MMTPA of the gas as natural gas liquids and re-convert it into LNG.

The board of Petronet on Wednesday approved a detailed feasibility report (DFR) on the new terminal would be ready by year-end and the investment is likely to be approved by early next year, said Balyan.
 
He added that it would take 46-48 months to build the facility.

The company operates a 10-million metric tonnes per annum terminal (MMTPA) at Dahej in Gujarat, which is planned to be expanded to 15 million metric tonnes.

''This capacity addition will ensure that the additional jetty, which is under construction and expected to be commissioned by September 2013, is optimally utilised,'' the  company said in a statement.

He added that the board had approved expansion of the Dahej terminal at a cost of around $280 million.

Balyan said the company imported 7.5 MMTPA  from Qatar currently on a long-term basis, while it was sourcing 1.5 MMTPA from Gas Natural (of Spain). He said the company was in talks with Qatar and Australia for long term for LNG sourcing contracts.