Latest news with #Petronet
Time of India
2 days ago
- Business
- Time of India
India's top LNG importer Petronet seeks $1.4 bn local loan
Petronet LNG is seeking a ₹120 billion ($1.4 billion) loan to fund a petrochemical plant in Dahej and an LNG terminal in Gopalpur. SBI Capital Markets is advising the deal, with Axis Bank, SBI, and Union Bank likely participants. If approved, it would be among India's biggest rupee loans this year, diversifying Petronet's earnings beyond LNG. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India's largest importer of natural gas Petronet LNG Ltd. is seeking a loan of at least 120 billion rupees ($1.4 billion) for a new petrochemical plant and an LNG terminal , according to people familiar with the lenders including Axis Bank State Bank of India and Union Bank of India are considering to join the facility, which is among the company's largest fundraising exercises, said the people, who asked not to be identified discussing private matters. The borrower is seeking bids from banks in groups or individually, they said, adding that SBI Capital Markets has been appointed as adviser for the facility for triple-A rated Petronet comes at a period of muted activity for India's loans space, where bank lending grew 9.5% as of June 27, the lowest growth rate since March 2022, according to the latest data from the Reserve Bank of India. If the financing goes through, it would be one of the biggest local currency loans for the country this year, according to Bloomberg-compiled for Axis Bank , Petronet, SBI, SBI Capital Markets and Union Bank of India didn't immediately reply to emails from Bloomberg News seeking from the loan will partially fund the construction of a new petrochemical complex in Dahej, located in the southwest coast of Gujarat in India, the people said, adding that it will help diversify the company's earnings beyond the LNG space. The project is estimated to cost 206.85 billion rupees, according to the company's New Delhi-based firm is also setting up a separate five million tons land-based LNG import terminal at Gopalpur, located on the east coast in latest loan could carry a tenor of more than 10 years, the people said. The pricing could be lower than SBI's one-month marginal cost of funds based lending rate of 7.95% currently, a benchmark gauge of local currency borrowings, two of the people said.
Time of India
05-06-2025
- Business
- Time of India
CGD to drive India's gas demand, set to become biggest consumer
The city gas distribution (CGD) sector is expected to surpass fertiliser plants this year to become the largest consumer of natural gas in India, thanks to the fast growth of CNG and piped gas networks, industry leaders said on Wednesday. CGD, which encompasses supply of CNG as fuel to automobiles, and piping gas to household kitchens for cooking as well as to industries, accounts for 21.22 per cent of the near 200 million standard cubic meters per day of gas consumption in the country. Natural gas consumption is likely to rise to 300-250 mmscmd in the next 7-10 years, GAIL Director (Marketing) Sanjay Kumar said while speaking at the 11th CGD Conference here. "Fertiliser sector consumes 60 mmscmd and this is likely to remain the same as no new fertiliser plants are on the anvil," he said. "CGD sector consumption could go up to 100 mmscmd from 41.1 mmscmd usage in February/March 2025." Anjani Kumar, Head (Gas Origination & BD), Shell Energy LNG, said, "CGD could very well become the largest consumption sector this year itself." The CGD sector will drive India's ambition to raise the share of natural gas in energy basket to 15 per cent from the current 7 per cent. But domestic production is insufficient to meet the demand and the country has to necessarily rely on imports of liquefied natural gas (LNG) . Gas demand, he said, has grown 35 mmscmd in the last three years and 80 per cent of this has been met through LNG. Currently, roughly half of the gas requirement is met through imports. India's CGD sector is experiencing rapid growth, driven by government initiatives, increased infrastructure investments, and a shift towards cleaner energy sources. City gas licences have been given out for almost the entire country in the recent auctions. The country now has over 8,000 CNG stations and 1.5 crore households using piped natural gas for cooking purposes. GAIL's Kumar said domestic gas production can rise to 130-135 mmscmd in next 4-6 years as per the projections made by the national oil companies. The production will "mature" by then and is unlikely to go up, he said. Petronet LNG Ltd MD & CEO A K Singh said the peak domestic production would not last long as fields mature. "We will be dependent on imported gas in future." Petronet operates two of the eight LNG import facilities in the country. Its Dahej import terminal in Gujarat is being expanded to 22.5 million tonnes per annum capacity from 17.5 million tonnes over the next 3-4 months. "Dahej is the world's biggest LNG import terminal," he said, adding that though capacity-wise it ranks 7th or 8th in the world, but because of full capacity utilisation throughout the year, it is the world's busiest terminal. "Dahej handles 270-275 cargoes in a year," he said. Besides Dahej, Petronet has a 5 million tonnes a year import facility at Kochi in Kerala that even after 12 years of commissioning operates at only 20-25 per cent of its capacity as not all consumers in the vicinity are connected with pipelines to take the fuel, he said. Singh said the Kochi to Bengaluru pipeline is likely to be completed by end 2025, which will help maximise utilisation of the import terminal.
Business Recorder
19-05-2025
- Business
- Business Recorder
India's LNG imports to rise on higher demand from power cos, says Petronet
NEW DELHI: India's liquefied natural gas imports are expected to rise in the coming months to meet growing electricity demand in the country, said A. K. Singh, chief executive of the country's top gas importer Petronet LNG. India last week invoked emergency measures asking companies to operate underutilised gas-based power plants at higher capacity from May 26-June 30 to meet electricity demand in the country, a notice posted on the ministry's website shows. India's power demand has been subdued so far this month as rains tempered temperatures in the country. 'We expect LNG demand to rise similar to last year's levels. Demand for power is rising in last few days so we are expecting demand for LNG to rise in the third or fourth week of May and in June,' he said. Power plants running on gas have been more expensive than those operating on coal, solar and wind power, resulting in idling of about three-fifth of all gas-fired power stations in the country. Global LNG: Asian spot LNG prices rise slightly on US-China tariff truce The narrowing price gap between spot and long-term LNG prices is also pushing some companies to step up purchases, he said, adding Indian customers prefer LNG prices at below $10 per million British thermal units. Petronet hopes to complete expansion of its 17.5 million tons per year (tpy) Dahaj terminal to 22.5 million tpy in the next three to four months, he said, adding his firm would maximise the utilisation of the terminal to meet demand in the summer season.
Yahoo
19-05-2025
- Business
- Yahoo
India's LNG imports to rise on higher demand from power cos, says Petronet
By Nidhi Verma NEW DELHI (Reuters) -India's liquefied natural gas imports are expected to rise in the coming months to meet growing electricity demand in the country, said A. K. Singh, chief executive of the country's top gas importer Petronet LNG. India last week invoked emergency measures asking companies to operate underutilised gas-based power plants at higher capacity from May 26-June 30 to meet electricity demand in the country, a notice posted on the ministry's website shows. India's power demand has been subdued so far this month as rains tempered temperatures in the country. "We expect LNG demand to rise similar to last year's levels. Demand for power is rising in last few days so we are expecting demand for LNG to rise in the third or fourth week of May and in June," he said. Power plants running on gas have been more expensive than those operating on coal, solar and wind power, resulting in idling of about three-fifth of all gas-fired power stations in the country. The narrowing price gap between spot and long-term LNG prices is also pushing some companies to step up purchases, he said, adding Indian customers prefer LNG prices at below $10 per million British thermal units. Petronet hopes to complete expansion of its 17.5 million tons per year (tpy) Dahaj terminal to 22.5 million tpy in the next three to four months, he said, adding his firm would maximise the utilisation of the terminal to meet demand in the summer season.
Yahoo
19-05-2025
- Business
- Yahoo
India's LNG imports to rise on higher demand from power cos, says Petronet
By Nidhi Verma NEW DELHI (Reuters) -India's liquefied natural gas imports are expected to rise in the coming months to meet growing electricity demand in the country, said A. K. Singh, chief executive of the country's top gas importer Petronet LNG. India last week invoked emergency measures asking companies to operate underutilised gas-based power plants at higher capacity from May 26-June 30 to meet electricity demand in the country, a notice posted on the ministry's website shows. India's power demand has been subdued so far this month as rains tempered temperatures in the country. "We expect LNG demand to rise similar to last year's levels. Demand for power is rising in last few days so we are expecting demand for LNG to rise in the third or fourth week of May and in June," he said. Power plants running on gas have been more expensive than those operating on coal, solar and wind power, resulting in idling of about three-fifth of all gas-fired power stations in the country. The narrowing price gap between spot and long-term LNG prices is also pushing some companies to step up purchases, he said, adding Indian customers prefer LNG prices at below $10 per million British thermal units. Petronet hopes to complete expansion of its 17.5 million tons per year (tpy) Dahaj terminal to 22.5 million tpy in the next three to four months, he said, adding his firm would maximise the utilisation of the terminal to meet demand in the summer season.
