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Petronet LNG

Overview

Petronet LNG Limited is an Indian energy company engaged in the import, regasification and supply of liquefied natural gas (LNG). It was established to address India's growing demand for natural gas by setting up dedicated LNG receiving and regasification terminals on the country's coasts. The company is one of the largest LNG importers in India and plays a central role in the nation's gas supply chain.

Key facts

Name Petronet LNG Limited
Industry Oil and gas; LNG import and regasification
Headquarters New Delhi, India
Country India
Type Public limited company
Listings BSE, NSE
Promoters GAIL, ONGC, Indian Oil Corporation, Bharat Petroleum Corporation
Major terminals Dahej (Gujarat), Kochi (Kerala)

Background

Petronet LNG was incorporated in the late 1990s as a joint venture initiative of the Government of India to facilitate the import of LNG and to build the necessary import and regasification infrastructure. Four public sector undertakings — GAIL (India) Limited, Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Limited (BPCL) — were brought together as the founding promoters, each holding an equal promoter stake. The Asian Development Bank and other strategic investors have also participated in the company's equity at various stages.

Operations

Dahej terminal

The flagship facility of Petronet LNG is the LNG import and regasification terminal at Dahej in the Bharuch district of Gujarat, on the west coast of India. Commissioned in the mid-2000s, the Dahej terminal has been progressively expanded in capacity through additional storage tanks, jetties and regasification trains, making it one of the largest LNG terminals in the world by throughput.

Kochi terminal

Petronet LNG's second terminal is located at Puthuvypeen in Kochi, Kerala, on India's south-west coast. The Kochi terminal supplies regasified LNG (R-LNG) to industrial users and city gas distribution networks in Kerala, Karnataka and Tamil Nadu, with utilisation closely linked to the build-out of connecting pipelines.

Supply arrangements

The company has long-term LNG sale and purchase agreements with international suppliers, most notably with RasGas (now part of QatarEnergy) of Qatar, along with shorter-term and spot purchases. Regasified LNG is sold to the promoter companies and other off-takers under tolling and gas sale arrangements, and is delivered through pipelines operated by GAIL and other transmission companies to power plants, fertiliser units, refineries, city gas distributors and industrial consumers.

Timeline

  • 1998 – Petronet LNG Limited incorporated as a joint venture of GAIL, ONGC, IOC and BPCL.
  • 2004 – Commissioning of the Dahej LNG terminal in Gujarat.
  • Mid- to late-2000s – Capacity expansions at Dahej through additional regasification trains and storage tanks.
  • 2013 – Commissioning of the Kochi LNG terminal in Kerala.
  • Subsequent years – Further expansion at Dahej, including additional jetty and storage capacity, and ramp-up of Kochi as connecting pipelines were completed.

Significance

Petronet LNG has been central to India's strategy of diversifying its energy mix by increasing the share of natural gas. By providing large-scale import infrastructure, it enables the supply of gas to sectors such as fertiliser production, power generation, refining, petrochemicals, transport (CNG) and household use (PNG) through city gas distribution networks. The company's terminals form key nodes in the national gas grid being developed by GAIL and other operators.

Corporate structure

Petronet LNG is a listed public company whose shares are traded on the Bombay Stock Exchange and the National Stock Exchange of India. The four promoter public sector undertakings continue to hold significant stakes, and the board of directors includes nominees of the promoter companies along with independent directors. The company is headquartered in New Delhi.

References

  • Wikidata: Q7179027
  • Annual reports and disclosures filed by Petronet LNG Limited with Indian stock exchanges.
  • Public information from the Ministry of Petroleum and Natural Gas, Government of India.