Japan’s JERA to invest $200 million in India’s ReNew Power

Japan’s JERA to invest $200 million in India’s ReNew Power

The world’s top buyer of liquefied natural gas JERA Co said on Tuesday, February 14,  it has agreed to invest about $200 million to take a stake in Indian renewable power producer ReNew Power Ventures Private Ltd.

JERA, a fuel joint venture between Tokyo Electric Power and Chubu Electric Power, said it would acquire a 10% stake through a third-party share allocation. The move marks the largest investment in renewable business overseas, it added.ReNew Power, a solar and wind power producer that owns about 1.5 gigawatt worth of installed operating capacity, is currently building another 1.8 GW worth of capacity, Jera said.

Source: LNG Global

 

LNG DEVELOPMENT/SHIPPING

 

  • India’s LNG import tax reduced by 50%
  • Petronet LNG net profit doubles
  • MLNG and VGS sign HOA for sales to KGLNGT terminal in Andhra Pradesh
  • PetronetLNG buys stake in LNG shipping consortium

 

India’s LNG import tax reduced by 50%

India’s finance minister ArunJaitley has unveiled a budget for recovery in parliament on 1 February. The budget has halved import tax on LNG to 2.5% from 5%. The move is part of India’s push to become a gas-based economy. The government had earlier stated its intent to more than double its annual LNG import capacity to 50 million t in the next few years.
Source: Reuters/Indian Oil & Gas

 

 

Petronet LNG net profit doubles

Public sector natural gas importer Petronet LNG reported a 133 per cent spurt in net revenue for the third quarter of Financial Year 2017 as compared to the corresponding period in the previous fiscal. The company’s net profit stood at Rs 3.9747 billion for the third quarter of financial year 2017 against Rs 1.7092 billion for the corresponding period in fiscal 2015-2016.The doubling of net profit reflected in the Earnings per share which grew to Rs 5.30 in the third quarter from Rs 2.28 in the corresponding quarter of the previous financial year. Revenue for the quarter ending December 2016 was at Rs 62.9929 billion, 22 per cent higher than the revenue earned in the quarter ending December 2015, which was at Rs 51.4603 billion. Net sales stood at Rs 59.7658 billion in third quarter of financial year 2017, against Rs 48.2185 billion in the corresponding period last fiscal.

Source: Indian Oil & Gas

 

MLNG of USA and VGS sign HOA for sales to KGLNGT terminal in Andhra Pradesh

Liquefied Natural Gas Ltd 100% owned subsidiary, Magnolia LNG, LLC (MLNG or Magnolia), has signed a Heads of Agreement (HOA) with Vessel Gasification Solutions, Inc. (VGS) in relation to the Magnolia LNG Project, in Lake Charles, Louisiana, United States (MLNG Project). Magnolia LNG proposes to construct and operate up to four liquefaction production trains, each with a capacity of 2 MMTPA or greater using the Company’s patented OSMR® LNG process technology. The non-binding HOA provides for a 20-year Free-on-Board (FOB) Sale and Purchase Agreement (SPA) of up to 4 MMTPA. The obligations of the parties are conditional upon MLNG’s satisfaction with or waiver of conditions precedent including financial close of the KGLNGT terminal and satisfaction by VGS of defined credit requirements underpinning their LNG purchases within agreed timeframes. With the execution of this agreement, VGS would be in a prime position to execute on the first-mover advantage it has established on India’s East Coast. The VGS Group is developing a floating LNG import and regasification terminal situated offshore at Kakinada Deepwater Port in Andhra Pradesh, India. The Kakinada based Krishna Godavari LNG Import Terminal will be East Coast India’s first LNG import project to become operational, and it will allow for the full utilization of close to 7,000 MW of near-idled power plants and lay the groundwork for an industrial renaissance in the industrial belt that girds the coastal region of Andhra Pradesh and Orissa.

Source: Indian Oil & Gas

 

LNG importer buys stake in LNG shipping consortium

Petronet LNG Ltd, India’s largest liquefied natural gas importer, has bought a 26% stake in the shipping consortium that built its biggest LNG ship to transport gas form from Australia. Petronet had in 2013 contracted Shipping Corp of India (SCI) and its Japanese partners to build and operate a 173,000 cubic meters capacity LNG ship. The LNG vessel, ‘Prachi’, was delivered in December last year. After sea trials, the ship has delivered the first cargo of LNG from Gorgon project in Australia to Petronet’s Dahej import terminal in Gujarat. “We have now decided to take 26% equity in India LNG Transport Company (No 4) Private Limited,” Petronet Director (Finance) R K Garg said here.Singapore-headquartered India LNG Transport Co (No 4) is the firm that won the time-charter contract from Petronet and got the 173,000 cubic meter vessel built at Hyundai Heavy Industries Co Ltd’s Ulsan shipyard in South Korea. After this, state-owned SCI holds 26% and NYK Line of Japan hold 26% stake each in the company, while 22% is held by Mitsui OSK Line and K Line. ‘Prachi’ is the fourth LNG vessel to be hired by Petronet. The earlier three are all deployed for ferrying LNG from Qatar.SCI, K Line, NYK Line and MOL consortium had won the tender by quoting the lowest charter hire of a little over USD 78,000 per day for 19 years for hauling LNG from Gorgon. Teekay LNG Partners LP, the only other firm to put in a price bid, had quoted a charter hire rate of USD 79,200 per day. “We did not take any equity in first two vessels but exercised our right and took 3 per cent in third (Assem),” Garg said.The fourth vessel, with 173,000 cubic meter capacity, is the biggest Petronet has ordered yet, he added. State-owned Oil and Natural Gas Corp (ONGC), GAIL India Ltd, Indian Oil Corp and Bharat Petroleum Corp Ltd (BPCL) own 12.5 per cent stake in Petronet LNG Ltd, India’s biggest buyer of LNG.

Source: PTI/Indian Oil & Gas)

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