Petronet LNG to gain from higher LNG usage going forward
The company announced its quarterly results on Monday with volumes falling 15.9 per cent year-on-year to 190 trillion British thermal units (tbtu) as LNG offtake was reduced during the lockdown.
New Delhi: Natural gas importer Petronet LNG, which reported a 45 per cent jump in Profit After Tax (PAT) for the quarter ended June, is set to gain from a comfortable business model and the company represents a structural story on India’s increasing gas demand, research firm ICICI Securities said.
“With India continuing to be short of natural gas supply, Petronet LNG will benefit as the primary play on increasing usage of LNG,” the firm said in a report, adding while volumes were impacted during the lockdown, currently Dahej terminal is operating at full capacity.
The company announced its quarterly results on Monday with volumes falling 15.9 per cent year-on-year to 190 trillion British thermal units (tbtu) as LNG offtake was reduced during the lockdown.
Petronet’s Kochi terminal is expected to see an increase in utilisation post completion of the Kochi-Mangalore pipeline. “The pipeline is expected to be commissioned by August end. This will help increase utilisation, going ahead. We expect capacity utilisation to improve to 30-35% in FY22E,” the report said.
At the 17.5 mmtpa Dahej terminal, 7.5 mmtpa capacity has been booked under RasGas long-term volumes while additional 8.25 mmtpa has been booked as regasification capacity, thus providing visibility to long-term volumes.
The company’s management has indicated it is planning to set up an import terminal on the east coast. Also, Petronet’s deal with Tellurian to buy a stake and import LNG is currently under negotiation.
