Birlaa.com

Petronet LNG is engaged in the import and regasification of liquefied natural gas (LNG). The company is a joint venture between leading oil and natural gas companies GAIL India, ONGC, Indian Oil and BPCL.

The company has a strategic partnership with French  based gas company, GAZ De France, and a LNG sale and purchase agreement with Ras Laffan Liquefied Natural Gas company, Qatar for the supply of LNG in India.

The company`s expansion of Dahej terminal to 10 MMTPA ca-pacity involves addition of LNG storage tanks, pumps, vapori-zation systems, send out & mastering systems. The ongoing expansion is likely to be commissioned by the end of 2008. Along with this, activities to set up LNG receiving & regasification at Kochi has been commenced with the nominal capacity of 2.50 MMTPA and provision to increase it to 5 MMTPA. These capacity additions with the growing demand specifically from fertilizer & power generation sector and supply-demand gap will prove highly beneficial for the company in future.

Petronet LNG has assured business for longer span of time as it has entered into gas sale purchase agreement (GSPA) with GAIL, IOC and BPCL for supplying them with re-gasified LNG (RLNG) for a period of 25 years.

The gas market in India is rapidly evolving with strong economic growth fueling energy demand across various sectors. It is expected that domestic production may grow to 192 MMSCMD considering the discovery of reserves made in recent past. The 11th plans also envisage supply of 83 MMSCMD from 4 LNG terminals. This provides positive outlook for the natural gas and LNG sector and would benefit the companies in coming years.

The company has shown astounding financial performance for the quarter ended June 2007. Th e net profit for the company rose to Rs 1,080.28 million for the Q1FY08 in comparison to the net profit of Rs 560.84 million for Q1FY07 with the growth rate of 93%.