September 13, 2021 12:24 PM
Petronet LNG Ltd, India’s largest gas importer, is looking to reclaim the lost opportunities of the past decade as it seeks fresh foray into the petrochemical business and plans to set up an LNG import facility on the east coast.
Oil Secretary Tarun Kapoor, who is also the Chairman of Petronet, in the firm’s latest annual report said the company is looking at setting up a floating terminal at Gopalpur port in Odisha and “is embarking upon a major diversification drive to broad base its business activity and is exploring to have an ethane/ propane import facility at Dahej terminal”.
Petronet LNG Ltd had some years back planned to set up a terminal at Gangavaram in Andhra Pradesh for import of supercooled gas in ships. The company management stopped pursuing that terminal in 2015-16 on grounds that there isn’t enough demand to justify a 5 million tonnes a year import facility.
Gangavaram would have been the first terminal on the east coast as Petronet owns and operates facilities at Dahej in Gujarat and Kochi in Kerala. Soon after that Adani Group began work to set up a 5 million tonnes a year import terminal at Dhamra port in Odisha.
Petronet now sees that there is demand for gas in the eastern region and despite the Dhamra LNG terminal, it is now looking for a facility at Gopalpur, a source said. Similarly, the company is trying to recapture the lost opportunity in the petrochemical sector.
Petronet’s long-term contract for import of liquefied natural gas (LNG) from Qatar provided for supply of 5 million tonnes a year of rich gas or gas containing ethane and propane – compounds used to make petrochemicals.