NEW DELHI : The Petronet LNG board on Monday approved the setting up of a petrochemical plant in Dahej, Gujarat with an estimated cost of ₹20,685 crore. The project has got the required statutory clearances and will be ready in the next four years, CEO and MD of the company Mr. Akshay Kumar Singh said addressing the media.
According to a regulatory filing, “the project would bring revenue generation from sale of Poly-Propylene, Propylene, Propane, Hydrogen and Ethane. The project would also get benefited from utilising ‘ColdEnergy’ of PLL’s existing Dahej LNG terminal making this project energy-efficient.” The state-owned company plans to develop 25 hectares of green belt area in the region.
The plant is expected to enhance the self-efficiency of the country in the field of petrochemicals, the filing said, adding that it would also facilitate a socio-economic uplift in the region through its huge planned investment and by creating a significant opportunity for direct and indirect employment.
The board also approved the execution of binding term sheet between Petronet LNG Limited (PLL) and Deepak Phenolics Limited (DPL) for offtake of 250 KTPA (kilo-tonne per annum) of Propylene and 11 KTPA of hydrogen from Petronet Petrochemical Project at Dahej, Gujarat for a period of 15 years from the date of first supply of propylene and hydrogen by PLL to DPL.
The diversification towards petrochemicals comes at a time when the government is looking at making the country a petchem hub and several other state-run companies including ONGC are looking at strengthening their foothold in this space.
The company on Monday reported an 8.9% growth in its consolidated net profit for the quarter ended September at ₹855.74 crore, against ₹785.73 crore in the same quarter of last fiscal.
Its revenue from income, however, declined 21.6% during the period under review to ₹12,532.57 crore. Its expenses during the July-September quarter were down 23.70% due to a fall in natural gas prices.
Speaking to the media virtually, Singh said that the negotiations between India and Qatar to extend their long-term contracts for natural gas imports is unlikely to be impacted by a possible diplomatic row after a local court in the Gulf country handed death sentence to eight former India navy personnel, employed by a Doha company over alleged espionage.
It (the diplomatic matter) will be handled at the highest level of the country… we hope this does not have any impact on business relations,” said Petronet LNG CEO said.
Noting that the company currently procures 8.5 million metric tonne per year of LNG under its deals with Qatar, and is “actively engaged” for the renewal of the contracts, the CEO said.
He further said that out of the total 20 mtpa contracted by Petronet, 8.5 mtpa comes from Qatar and the rest from other countries including Russia, Singh described that the portfolio is balanced.