India's Petronet reports 45% jump in profit in April-June
Petronet LNG, India's largest LNG importer, on July 24 reported a 45% year/year increase in standalone net profit for the April-June quarter (Q1FY2025), attributed to stable LNG prices and improved capacity utilisation of its terminals.
The company’s profit rose to 11.42bn rupees ($140mn) in Q1, up from 7.9bn rupees in the same period last year. The profit was up 55% quarter/quarter. Petronet LNG operates two land-based LNG import and regasification terminals on the west coast of India, located in Dahej, Gujarat, and Kochi, Kerala.
The overall LNG volume processed by the company in the quarter was a record 262 trillion Btu, compared with 230 trillion Btu last year. The LNG processed volume grew 12% quarter/quarter. The Dahej terminal processed a record 248 trillion Btu of LNG, up from 217 trillion Btu last year. The volume of LNG processed at Dahej was up 13% quarter/quarter. The Dahej terminal witnessed a capacity utilisation of 109% in the current quarter, compared with 97% in the previous quarter and 96% in the corresponding quarter last year.
Petronet LNG aims to set up its third LNG import terminal in east India. In December 2023, Petronet LNG took steps towards this expansion by signing binding transaction documents, including a sub-concession agreement, sub-lease deed, and port service agreement with Gopalpur Ports.
The proposed facility at Gopalpur Port in the state of Odisha will feature a floating storage regasification unit (FSRU) with an initial capacity of around 4mn tonnes/year, expandable to 5mn tonnes/year as a land-based terminal. The project, approved in 2022, marks Petronet's first LNG terminal on the east coast of India.
Earlier this year, Petronet signed a 20-year deal with QatarEnergy to purchase 7.5mn tonnes/year of LNG. This deal builds upon the existing relationship between Petronet LNG and Qatar. The first agreement for the supply of LNG from Qatar was signed in 1999, involving the delivery of 7.5mn tonnes/year. In 2015, another agreement was reached, adding an additional 1mn tonnes/year of LNG to the contract.
The existing long-term agreement between Petronet LNG and QatarEnergy today accounts for around 35% of India’s LNG imports, according to Petronet LNG.