Indian Gujarat Gas, Petronet Sign LNG MoU

Indian Gujarat Gas Company has entered a non-binding memorandum of understanding with India’s biggest gas importer Petronet LNG for dispensing and marketing of LNG including the L-CNG, it said May 30. 

Gujarat Gas operates primarily in the western Indian state of Gujarat and is among India’s largest city gas distribution player. It operates a network of 16,000 kilometres of gas pipelines and 233 CNG stations. Petronet, which is country’s biggest importer of LNG, operates India’s busiest terminal at Dahej in Gujarat. It also has an LNG import terminal in Kochi in south India.

Demand for LNG in India has become very strong as importers have taken advantage of soft international prices. During the fiscal that ended March 31, 2017, the country imported 24.6bn m³ of LNG, up 15.5% on year.

India has four operating LNG terminals: Dahej, Hazira, Dhabol and Kochi. According to a document released by the oil ministry June 3, 2016, India’s LNG terminal capacity could more than double by 2022 as existing terminals expand and new ones are commissioned.

Shardul Sharma