Petronet LNG's Dahej Terminal Capacity Utilization Over 100% in FY16

Petronet LNG’s Dahej terminal in the state of Gujarat saw capacity utilization of 111 percent during the year that ended on March 31, 2016.

The terminal processed 566 tBtu of LNG during 2015-16, the highest ever quantity processed at Dahej since inception of the company. Company’s second terminal at Kochi terminal, however, due to lack of pipelines, handled only 14 tBtu of LNG including the reload sales and primarily served one major consumer in the vicinity of the terminal, i.e., Kochi refinery.

Petronet LNG is promoted by state-owned energy companies GAIL, Oil and Natural Gas Corp, Indian Oil Corp and Bharat Petroleum Corp. It operates a 10 MTPA LNG import terminal at Dahej and a 5 MTPA at Kochi in Kerala.

The work for expansion of Dahej LNG terminal from 10 MMTPA to 15 MMTPA is going on as per schedule and it is expected that this capacity expansion will be completed before end of the year 2016, Petronet said Monday.

Profit drop

Given the backdrop of low global LNG price, Petronet LNG insisted on renegotiating its long term contract with RasGas. In December, the two parties signed a revised contract. The revised formula bases the price on a three-month average figure of Brent crude oil, replacing a five-year average of a basket of crude imported by Japan, with a rider that Petronet buys an additional 1 million tons of LNG annually. Qatar also waived off a $1.5 billion penalty against India for lifting less gas than agreed.

Cost of LNG that India imports from Qatar has slipped below $5 per mmBtu post signing of revised long-term deal. Despite the fall in price in the fourth quarter of the fiscal, Petronet reported net profit of Rs 239 crore in Q4, much lower than Rs 301 crore reported in the year ago period.

India and Qatar have a contract under which New Delhi imports 7.5 million tons a year of LNG. The contract will run till April 2028.