Petronet LNG Ltd of India has no plans to invest in liquefied natural gas (LNG) developers as the market is short of affordable fuel, its finance chief said, suggesting that Teleurion Inc. plans to invest in the US project Can get shelter.
Petronet, the country’s top gas importer, has time until December-end, which would consider investing $ 2.5 billion for 5 million tonnes per annum (mtpa) of LNG in Tellurian’s driftwood project.
VK Mishra said at an analyst conference on Thursday, “Right now we get LNG at throwaway prices, so there is no need to go for investment … you should be more concerned with LNG.”
“It is a non-binding memorandum and there is no commitment,” Mishra said, adding that the company is in talks with spot prices for a new long-term LNG contract.
India is scouting for cheaper gas for price-sensitive consumers, as Prime Minister Narendra Modi wants to increase the share of natural gas in the national energy mix to 20% by 2030 by 2030 to reduce pollution.
Petronet has signed a deal to buy 7.5 mtpa of LNG from Qatar and 1.44 mtpa from Exxon Mobil Corp’s Gorgon project in Australia.
Spot LNG prices are currently high during the winter, he said, adding that prices will fall to $ 4-6 per million British thermal units (MMBtu) after January.
To meet India’s growing gas demand, Petronet plans to build a new LNG terminal on the east coast of the country as well as increase its annual capacity at Dahej Terminal in Western India from 17.5 million tonnes to 19.5 million tonnes. Is planning
Mishra said Petronet is awaiting final approval from Sri Lankan authorities to build a temporary LNG terminal in the island nation for about $ 300 million.
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