Petronet LNG Ltd.


Website : http://www.petronetlng.com/
Petronet LNG Ltd. is an Indian oil and gas company formed by the government of India to import liquefied natural gas (LNG) and set up LNG terminals in the country. It is a joint venture company promoted by the Gas Authority of India Limited (GAIL), Oil and Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOC) and Bharat Petroleum Corporation Limited (BPCL) with an authorized capital of Rs. 1200 crores (US$ 240 million). Each has 12.5% equity share totaling to 50%. In addition, GDF International (GDFI), a wholly owned subsidiary of Gaz de France, a French national gas company, holds 10% and the Asian Development Bank (ADB) holds 5.2% of the equity. The balance of the equity, 34.8%, is held by the public.

The company has selected Gaz de France as its strategic partner. The company has also signed an LNG sale and purchase agreement with Ras Laffan Liquefied Natural Gas Company Ltd., Qatar for the supply of LNG to India.
Petronet LNG Ltd. has set up its first LNG terminal at Dahej in Gujarat with the capacity of 10 million metric tons per year. Capacity of Dahej Terminal will expand to 15 million tons per year till end of 2014. Another terminal with capacity 5 million tons per year is commissioned in Kochi (Kerala) and started its operations in August 2013. Petronet LNG is planning to set up its third LNG terminal with capacity 5 million tons per year probably in Andhra Pradesh. It is expected that by 2016 PetronetLNG's total operating capacity will be 25 million tons per year.

Company Profile


The Government of India, in July of the year 1997 approved the formation of a Joint Venture Company (JVC) for securing competitive Liquefied Natural Gas (LNG) supply and for development of facilities for the import and utilization of LNG. The GAIL (India) Ltd (GAIL), Oil & Natural Gas Corporation Ltd (ONGC), Indian Oil Corporation Ltd (IOCL) and Bharat Petroleum Corporation Ltd (BPCL) formed Petronet LNG Limited as a Joint Venture company. The Company was incorporated in 2nd April of the year 1998 to import LNG and set up LNG terminals in the country; it involves India's leading oil and natural gas industry players. It has (LNG) receiving and regasification terminal at Dahej, Gujarat. Petronet also has a strategic partnership with French-based Gas Company, GAZ De France and a LNG sale and purchase agreement with Ras Laffan Liquefied Natural Gas Company, Qatar for the supply of LNG in India. The consortium led by Mitsui OSK Lines Limited of Japan received shipping time charter contract from the company in the year 2002-03 for 2 LNG vessels of 1,38,000 cu.m capacity each. The construction of second LNG taker named Indhan' commenced with the steel cutting in 6th May of the year 2003. The Company successfully commissioned India's first LNG receiving and regasification terminal at Dahej in February of the year 2004. Asian Development Bank (ADB) acquired 5.2% equity stake in Petronet LNG in the year 2004, in the same year, the company inked debt syndication agreements with banks and financial institutions, got one year permit for in-chartering LNG tanker and Came out with an Initial Public Offering (IPO. The Company had entered into Memorandum of Collaboration with IBP Company Ltd 24th August of the year 2004 for development of LNG distribution business through cryogenic technology under the concept of The Virtual Pipeline. During the year 2004-05, Petronet commenced activities for setting up LNG receiving and regasification terminal at Kochi of 2.5 MMTPA normal capacity, with provision of expansion to 5 MMTPA. The Company joined hands with IBP for LNG supply to Gujarat in the year 2005. During the year 2006, Petronet LNG & Adani Group signed Joint Venture agreement for building Solid Cargo Port at Dahej. During the financial year 2006-07, 92 LNG cargoes were unloaded and 7427 MMSCM regasified LNG was supplied to the Off-takers. The facilities for loading of LNG in road tankers also installed at Dahej in the same year. The Company had entered into a Memorandum of Understanding with Gujarat Maritime Board in the identical year 2006-07 to develop a second LNG jetty / berth at Dahej. The Company had executed a term agreement in July of the year 2007 at Doha with Rasgas, Qatar for supply of about 1.25 MMT quantity of LNG. During the year 2007-08, 101 LNG cargoes were unloaded and 321.95 mmbtu of regasified LNG was supplied to the Offtakers. As at February 2008, Petronet LNG awarded a USD 250 million contracts to a consortium led by Japan's Ishikawajima-Harima Heavy Industries for building two liquefied natural gas storage tanks at Kochi. Petronet LNG is looking for 15 more spot LNG cargoes this fiscal after it doubles capacity of its Dahej terminal to 10 million tons from December of the year 2008. A Solid Cargo Port through a Joint Venture Company namely Adani Petronet (Dahej) Port Private Ltd is being implemented. The Phase I is likely to be completed by November 2009 and the Phase II by September 2010.