Petronet LNG Reimagines Its Future: Rs 40,000 Crore Push into Petrochemicals

Petronet LNG is embarking on a substantial expansion initiative, with plans to invest Rs 40,000 crore to bolster its import capacity and venture into the petrochemical sector, aiming to triple its net profit by 2028. The company's strategic move into petrochemicals involves a substantial investment of Rs 12,685 crore in a propane dehydrogenation plant, which will facilitate the conversion of imported feedstock into propylene.

Additionally, Petronet intends to establish an LNG import facility at Gopalpur in Odisha, with an estimated investment of Rs 2,300 crore. Further investment allocations include Rs 600 crore to enhance the capacity of the Dahej LNG import terminal to 22.5 million tonnes and Rs 1,245 crore towards constructing an additional storage tank and bays for LNG truck loading. The Dahej import terminal is slated to incorporate a third jetty to facilitate the import of propane, ethane, and LNG. Moreover, the company plans to develop a four million tonne per annum (tpa) LNG import terminal at Gopalpur port.

Originally contemplating a floating storage and regasification (FSRU)-based LNG import facility, Petronet is now shifting its focus toward a land-based terminal. Notably, the company recently extended a deal to import 7.5 million tpa of LNG from Qatar for an additional 20 years and is considering investments in overseas projects, including a floating LNG terminal at Colombo in Sri Lanka.

In alignment with its strategic vision, Petronet has devised a 1-5-10-40 strategy, aiming to achieve a turnover of Rs one lakh crore within five years, accompanied by a net profit of Rs 10,000 crore, through prudent investments in expansions. Presently, the company operates a flagship import terminal with a capacity of 17.5 million tpa at Dahej in Gujarat, alongside another facility with a capacity of five million tonnes at Kochi, Kerala. Petronet anticipates commencing LNG shipments in containers to Sri Lanka within the next 18 months and envisions establishing an import terminal at Colombo port within five years.

Petronet LNG is jointly owned by Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL), GAIL (India) Limited, and Oil and Natural Gas Corporation (ONGC), each holding a 50 percent stake. The company's board comprises representatives from these four entities, with the Secretary of the Ministry of Petroleum and Natural Gas serving as the chairman.

News by Rahul Yelligetti