Petronet LNG Ltd, the operator of the world's largest liquefied natural gas (LNG) import terminal, has announced plans to invest Rs 40,000 crore over the next 4-5 years, with a focus on both domestic and overseas ventures, revealed its CEO A K Singh on Thursday.
A significant portion of this investment will be directed towards venturing into the petrochemical business. Petronet aims to invest Rs 12,500 crore in establishing a Propane Dehydrogenation Plant, converting imported feedstock into propylene. Additionally, it plans to set up a floating LNG import facility in Gopalpur, Odisha, at a cost of Rs 1,600 crore.
In addition to domestic endeavors, Petronet is exploring opportunities for investment in overseas projects, including gas fields and liquefaction plants. Singh emphasized the company's commitment to evaluating beneficial opportunities for international investment, without specifying further details.
India's demand for natural gas surpasses domestic production, resulting in significant reliance on LNG imports. Petronet intends to allocate Rs 17,000 crore towards enhancing domestic LNG import capacity and venturing into petrochemicals. This includes increasing the capacity of the Dahej LNG import terminal in Gujarat and developing additional storage infrastructure.
The company also plans to establish a floating storage and regasification-based LNG import facility off the Gopalpur port, later converting it into a land-based terminal with expanded capacity.
Recognizing the growing demand for gas in the eastern region, Petronet has redirected its focus to Gopalpur despite the presence of the Dhamra LNG terminal. This strategic shift aligns with the company's goal of meeting regional gas requirements efficiently.
Petrochemicals, derived from crude oil and natural gas, serve as crucial raw materials for various industries. With the petrochemical market in India projected to witness substantial growth, Petronet aims to capitalize on this opportunity by diversifying its portfolio.
Petronet LNG Ltd, jointly owned by state-owned entities such as Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL), GAIL (India) Ltd, and ONGC, is poised to embark on ambitious ventures underpinned by strategic investments and collaborations.
(With Agency Inputs)
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