Petronet LNG Ltd, known for running the biggest liquefied natural gas (LNG) import terminal globally, aims to boost its capabilities by investing Rs 40,000 crore. This investment will not only expand its import capacity but also venture into the petrochemicals sector. CEO AK Singh shared the company’s ambitious goal to triple its net profit by 2028.
The company’s expansion plans include investing Rs 12,685 crore in a propane dehydrogenation plant for converting imported feedstock into propylene. Additionally, Petronet intends to establish an LNG import facility in Gopalpur, Odisha, costing Rs 2,300 crore.
In a bid to achieve its objectives, Petronet recently extended a deal to import 7.5 million tonnes of LNG annually from Qatar for another 20 years. The company also eyes investments in international projects like a floating LNG terminal in Colombo, Sri Lanka.
With a strategy termed “1-5-10-40”, Petronet aims to increase turnover to Rs 1 lakh crore within 5 years, with a net profit target of Rs 10,000 crore. This strategy, initiated two years ago, outlines the company’s vision until 2027-28.
Currently, Petronet boasts a turnover of Rs 55,000-60,000 crore and an annual net profit of Rs 3,200 crore. The company operates major import terminals in Dahej, Gujarat, and Kochi, Kerala.
CEO Singh also highlighted plans to ship LNG in containers to Sri Lanka within the next 18 months, alongside setting up an import terminal at Colombo port within five years.
Moreover, Petronet intends to enhance the capacity of the Dahej LNG import terminal to 22.5 million tonnes and invest in additional storage and truck loading facilities. The company is also eyeing a land-based LNG terminal at Gopalpur port, deviating from its initial plan of a floating storage and regasification facility. Despite earlier considerations, Petronet recognizes the rising demand for gas in the eastern region and is determined to establish a foothold in Gopalpur, Odisha.
Petrochemicals, derived from crude oil and natural gas, serve as essential materials for various industries including plastics, packaging, and personal care products. Petronet LNG Ltd is jointly owned by Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL), GAIL (India) Ltd, and ONGC, with guidance from the Ministry of Petroleum and Natural Gas.