Petronet LNG to foray into petrochemical business

Source :IANS
Author :IANS
Last Updated: Tue, Sep 14th, 2021, 10:20:06hrs
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New Delhi: State-run Petronet LNG Ltd plans to diversify its business and enter the petrochemical segment.

Tarun Kapoor, Secretary, Ministry of Petroleum & Natural Gas, who is also the Chairman of the company said in its annual report that the Petronet is embarking upon a major diversification drive to broad base its business activity and is exploring to have an ethane or propane import facility at Dahej Terminal.

"The company has also planned for setting up of a Petrochemical complex based on imported propane at Dahej LNG Terminal. The foray into Petrochemicals would be a forward integration of our strategy as the same is planned to get synchronised with our upcoming third jetty project and available land bank at Dahej," he said.

The Chairman also said that Petronet envisages to be an integrated energy company and has thereby incorporated a wholly-owned subsidiary company 'Petronet Energy Limited' (PEL) with an authorised share capital of Rs 500 crore to establish itself as a key player in the growing Asian gas bunkering market.

PEL is planned to offer LNG Bunkering services, allied services like 'gassing up' and 'cooling down' operations and other value-added services in LNG and Marine sector in phased manner.

The necessary regulatory compliances and unit formation at Puthuvypeen Special Economic Zone, Kochi is under progress, he said, adding that the strategic location of Kochi terminal is expected to spur bunkering activity in the region at competitive price. With LNG-fuelled tonnage set to increase in Asia in the coming months, Kochi LNG terminal is expected to provide a potentially valuable refuelling point for East-West trade, he added.

Stressing that the company is committed towards providing a cleaner and greener economy, Kapoor said that it has embarked upon a new business activity of setting up of compressed biogas (CBG) plants across India, which will also contribute to Centre's initiative titled 'SATAT' (Sustainable Alternative Towards Affordable Transportation).

Petronet has signed a MoU with the Ministry of Petroleum & Natural Gas (MoPNG), GoI, for setting up and commissioning of 100 CBG plants across India.

CBG being a renewable business is gaining momentum and may turn out to be a game changer for the Indian economy. This would not only bring in reduction in carbon emissions but also reduce the import dependence on fossil fuels and contribute towards the upliftment of the rural economy, he said.
 

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