November 10, 2022 [Reuters] – India’s top gas importer, Petronet LNG Ltd (PLNG.NS, is running its western import terminal of Dahej at more than 80% of capacity after some customers increased purchases of the super cooled gas, finance chief V K Mishra said on Thursday.
Petronet supplies gas, mostly procured under long-term deals with Qatar and Australia, to Indian energy companies for sale to end-users. These companies also have booked capacity at Dahej to directly import gas.
Capacity use at the 17.5-million-tonnes-a-year terminal averaged 80% in the September quarter, Mishra said on an analyst call, adding that capacity use fell below 80% for a few weeks in September and October, leaving the company with unsold volumes.
“Dahej throughput was reduced … but now the situation has improved and we are now managing to get targeted and scheduled cargoes,” Mishra added.
The price of gas sourced through long-term deals is about $12 to $13 per million British thermal units, far lower than spot prices.
Customers had cut off-take for reasons such as maintenance shutdowns at some fertiliser plants, Mishra said, adding that Petronet may levy a penalty on clients in the December quarter for not using their full capacity.
Petronet plans to set up a 4-million-tonnes-a-year floating storage and regasification terminal at Gopalpur in eastern India by 2026, for which Mishra said it was seeking a 1.6-million-tonnes a year (MTPA) LNG import deal.
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