New Delhi, India: In an exciting move that promises to transform the petrochemical landscape in India, Petronet LNG’s board of directors greenlit the establishment of a groundbreaking petrochemical plant in Dahej, Gujarat. With an estimated investment of ₹20,685 crore, this visionary project has already secured the necessary regulatory approvals and is poised to become operational within the next four years. Addressing the media, CEO and Managing Director of Petronet LNG, Akshay Kumar Singh, shared the project’s remarkable potential.
According to a recent regulatory filing, this project will not only bolster revenue through the sale of various petrochemical products like Poly-Propylene, Propylene, Propane, Hydrogen, and Ethane, but it will also harness the “ColdEnergy” of PLL’s existing Dahej LNG terminal, ensuring an eco-friendly and energy-efficient venture. Additionally, the state-owned company plans to develop a sprawling 25-hectare green belt area in the region.
This ambitious plant is set to significantly enhance India’s self-sufficiency in the petrochemical sector, fostering economic growth in the region by creating numerous employment opportunities. The project’s massive investment and commitment to the socio-economic uplift of the area are expected to make a substantial impact.
In a related development, the board has also given the green light to a binding term sheet agreement between Petronet LNG Limited (PLL) and Deepak Phenolics Limited (DPL) for the supply of 250 Kilo-Tonne Per Annum (KTPA) of Propylene and 11 KTPA of hydrogen from the Petronet Petrochemical Project at Dahej, Gujarat. This agreement spans 15 years, commencing from the initial supply of propylene and hydrogen by PLL to DPL.
This strategic foray into petrochemicals coincides with the Indian government’s initiative to establish the country as a petrochemical hub, with various state-run companies, including ONGC, actively expanding their presence in this sector.
On the financial front, Petronet LNG reported an impressive 8.9% growth in consolidated net profit for the quarter ending in September, totaling ₹855.74 crore, compared to ₹785.73 crore in the same quarter of the previous fiscal year. However, its revenue decreased by 21.6% during the same period to ₹12,532.57 crore, primarily due to falling natural gas prices. Expenses in the July-September quarter also declined by 23.70%.
Addressing concerns about a potential diplomatic dispute between India and Qatar following a recent death sentence handed to eight former Indian navy personnel by a Doha-based company over alleged espionage, Petronet LNG CEO, Akshay Kumar Singh, assured the media that the matter would be addressed at the highest governmental level. He expressed hope that it would not impact business relations.
Singh emphasized that the ongoing negotiations to extend long-term contracts for natural gas imports with Qatar, responsible for supplying 8.5 million metric tonnes per year (mtpa) of LNG under current agreements, remain unaffected. He underlined the balanced portfolio of 20 mtpa contracted by Petronet, with 8.5 mtpa sourced from Qatar and the remainder from various countries, including Russia.
About Petronet LNG:
Petronet LNG Limited (PLL) is an Indian company specializing in the oil and gas industry. It primarily focuses on the importation and processing of liquefied natural gas (LNG). Established by the Government of India, PLL’s primary objective is to facilitate LNG importation and establish LNG terminals within the nation’s borders. Notably, PLL holds the distinction of operating the largest LNG import terminal globally.
For more of the Latest News, Click Here
