India’s gas importer Petronet LNG is planning to set up an LNG import facility at Gopalpur port in the state Odisha, India, as it looks to move into the petrochemical business.
In the latest annual report, the company said that the new floating import terminal will be used to meeting the growing gas demand in eastern and central regions of India.
In a statement, the firm said it 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’.
In 2015-16, Petronet dropped its plan to set up a five million tonnes a year import facility at Gangavaram in Andhra Pradesh, citing weak demand to justify a facility.
Soon after the planned exit, work was started by Adani Group to launch a five million tonnes a year import terminal at Dhamra port in Odisha.
Petronet said it now sees increased gas demand in the eastern region and expects the Gopalpur facility would cater to this demand, despite the Dhamra LNG terminal, reported Press Trust of India (PTI) citing a source.
In the annual report, Petronet chairman Tarun Kapoor said that the firm has also planned to set up a petrochemical complex based on imported propane at Dahej LNG Terminal.
Kapoor added: “The foray into petrochemicals would be a forward integration of our strategy as the same planned to get synchronised with our upcoming third jetty project and available land bank at Dahej.”
Moreover, Petronet has incorporated a wholly owned subsidiary company ‘Petronet Energy Limited’ (PEL)’ as it seeks to become an integrated energy company.
The new subsidiary, which has an authorised share capital of Rs5bn ($67.8m), would offer LNG bunkering services in addition to allied services and other value-added services in the LNG and marine sectors.
Petronet also agreed with the Indian Ministry of Petroleum & Natural Gas (MoPNG) to build and commission 100 compressed biogas (CBG) plants across the country.