Petronet of India has no agendas to invest in LNG producers

Petronet, the nation's top gas importer, has until the end of December to consider investing $ 2.5 billion for 5 million tonnes per annum (mtpa) of LNG in Taylor's driftwood project.



New Delhi: Petronet LNG Ltd of India has no plans to invest in liquefied natural gas (LNG) developers as the market lacks cheap fuel, its finance chief said, suggesting that investment in Tellurian Inc.'s US project The plan to do so can be overcome.


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Petronet, the nation's top gas importer, has time until December-end, which would consider investing $ 2.5 billion for LNG's 5 million tonnes per annum (by 2020) in Taylor's downstream project.

"Right now, we get LNG at throwaway prices, so there is no need to go for investment ... you should be more concerned with LNG," VK Mishra said at an analyst conference on Thursday.

"It is a non-binding memorandum and there is no commitment," Mishra said, adding that the company is in talks with spot prices for a new long-term LNG contract.

India is in search of inexpensive gas for consumers who need cheaper as PM Narendra Modi wishes to boost natural gas shares in the national energy mix from 20% to 15% by the year 2030 to decrease the pollution.


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Petronet has signed a deal to buy 7.5 mtpa of LNG from Qatar and 1.44 mtpa from Exxon Mobil Corp's Gorgon project in Australia.

Spot LNG prices are currently high during the winter, he said, adding that prices will fall to $ 4-6 per million British thermal units (MMBtu) after January.

To meet India's growing gas demand, Petronet plans to build a new LNG terminal on the east coast of the country as well as increase its annual capacity at Dahej terminal in Western India from 17.5 million tonnes to 19.5 million tonnes. Is planning

Mishra said Petronet is awaiting final approval from Sri Lankan authorities to build a temporary LNG terminal in the island nation for about $ 300 million.


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