Petronet News

GAIL (India) Ltd is close to finalizing a long-term liquefied natural gas (LNG) import deal with Qatar to buy at least 1 million metric tons per year, potentially for more than 20 years, three industry and trade sources said.The deal would be part of GAIL's plans to lock in new supply contracts by 2030 to diversify its gas imports and hedge against supply disruptions like those seen after Russia's invasion of Ukraine last year, when LNG prices surged to a record high.Neither state…

India, grappling with its worst power crisis in five years, has asked Qatar to expedite delivery of 58 delayed liquefied natural gas (LNG) cargoes, two sources familiar with the matter said.Asia's third largest economy is suffering its worst power shortage since March 2016 due to a crippling coal shortage amid high global energy prices.Infrastructure maintenance at supplier Qatargas prevented it from delivering 50 LNG cargoes to India this year, the sources said, prompting India's…

At least five fully-laden liquefied natural gas (LNG) tankers are idling offshore India, as yet unable to discharge their cargoes, after importers there declared force majeure earlier this week, according to an analyst and shipping sources.Gas demand is falling globally amid the fast-spreading coronavirus which has capped industrial output, forcing LNG tankers in several regions to remain at sea fully laden with no immediate destination, the sources said.At least three major buyers in India…

Doha-based liquefied natural gas (LNG) producer Qatargas has supplied a commissioning LNG cargo for India's newest LNG receiving terminal, Mundra.The cargo was loaded in Ras Laffan on 17 January 2020 on the Q-Flex LNG vessel, Murwab, with an overall cargo carrying capacity of 216,000 cubic meters. It arrived at Mundra terminal on 22 January 2020.Mundra is the second LNG terminal that Qatargas helped commission in India within the past year. It followed an earlier commissioning cargo which was delivered by the Company to the Ennore LNG receiving terminal, near the southern Indian city of Chennai, in February 2019.The Mundra terminal is located in Adani Ports and Special Economic zone in the Kutch district of the western Indian state of Gujarat.

Russia’s largest independent natural gas producer Novatek signed a memorandum of understanding (MoU) on cooperation with India’s largest liquefied natural gas importer Petronet LNG.The MoU envisages delivering LNG supplies from Novatek's portfolio to the Indian market, including natural gas supplies for power generation, as well as investment by Petronet LNG in Novatek's future LNG projects and the joint marketing of LNG as motor fuel in India, including joint investment in developing a network of filling stations and a fleet of LNG-fueled trucks.“India’s rapid economic growth requires increasing demand for all sources of energy and, primarily, for natural gas as the most environmentally friendly type of fuel.

Tellurian Inc confirmed on Wednesday it still plans to make a final investment decision to build its proposed $30 billion Driftwood liquefied natural gas (LNG) export project in Louisiana in 2019:* The company, in a first-quarter earnings statement, said it was on track to make a final investment decision in 2019, start construction in 2019 and begin operations in 2023.* Driftwood is designed to produce 27.6 million tonnes per annum (MTPA) of LNG or about 4 billion cubic feet per day (bcfd) of natural gas. One billion cubic feet of gas is enough to fuel about 5 million U.S. homes for a day.* The company has said the first phase will likely comprise 16.6 MTPA.* Driftwood is one of more than a dozen U.S.

Qatargas, the world’s largest LNG producer, supplied a commissioning cargo for India’s Ennore LNG receiving terminal, near the southern Indian city of Chennai.The commissioning LNG cargo was delivered onboard the vessel ‘Golar Snow’ on 25th February 2019 by the Swiss commodity trader, Gunvor, to the state-owned Indian Oil Corporation Limited (IOCL), which owns and operates the five million tonnes per annum (MTPA) terminal. Qatargas sold the cargo Free On Board (FOB) basis to Gunvor.Ennore will be India’s fifth operational LNG terminal and the first LNG terminal on the East Coast of India. Once fully commissioned, Ennore will provide regasified LNG to anchor customers…

During the quarter and post quarter end, there has been continued momentum in the start-up of new LNG liquefaction capacity with the fourth train at Sabine Pass in the U.S. shipping its first commissioning cargoes in August 2017, said GasLog Partners. Sabine Pass has now shipped approximately 200 cargoes since start up in early 2016. Post quarter end, Chevron's Wheatstone LNG project in Australia started production with the first LNG shipment expected in the coming weeks. Dominion's Cove Point project in the U.S. and Novatek's Yamal LNG project in Russia are both expected to start LNG production by the end of 2017 and ramp up exports into 2018.

India's biggest importer of U.S. liquefied natural gas (LNG) is trying to re-negotiate prices with the U.S. seller, sources said, undermining plans by U.S. President Donald Trump to export more gas to the fast-growing Asian nation. At a joint news conference with Indian Prime Minister Narendra Modi at the White House this week, Trump said the United States looked forward to exporting more energy, including new major long-term contracts to purchase American natural gas. The effort is part of Trump's policy of seeking to assert power abroad through a boost in natural gas, coal and petroleum exports. He said on Thursday that the "golden era" of the U.S. energy business was now underway.

India's Essar Ports has won a contract to build the first liquefied natural gas (LNG) terminal in West Bengal  under the Kolkata Port Trust (KoPT) at an investment of Rs 450 crore (USD 70 million). A Press Trust of India report said that the LNG project is expected to be commissioned in two years. The facility will come up at the Haldia port with a capacity to store one million tonne of the clean fuel. Haldia Dock Complex under Kolkata Port Trust had earlier this year invited bids for setting up an LNG terminal with storage and distribution facilities. Essar Ports, in consortium with Ultra LNG and Essar Shipping, had participated in the tender and emerged as the highest bidder for the project, beating state-owned Petronet and private operator V Energy.

Asian spot LNG prices fell this week on poor demand from major gas-consuming regions despite a slew of new purchase tenders. The May spot LNG contract fell by $0.25 cents to $5.40 per million British thermal units (mmBtu), with new production coming on stream in Australia and the United States. Analysts and traders mainly blamed low demand for driving prices lower. In the Middle East, Abu Dhabi was staying on the sidelines of the market and new solar power capacity in Dubai was eroding gas demand there.

Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) signed an initial agreement with India's energy company Petronet LNG Limited to set up an LNG re-gasification terminal on Kutubdia Island and a pipeline at an estimated cost of $950 million. Prabhat Singh, managing director and chief executive officer, Petonet and Syed Ashfaquzzaman, secretary, Petrobangla, sign an agreement at Petrobangla Bhaban in Dakka. The agreement aims to set up liquefied natural gas infrastructure, which includes a land-based LNG terminal and a pipeline to carry the re-gasified LNG. The capacity of the terminal is expected to be 7.5 MMTPA (1,000 MMSCFD) at an expected project cost of $950 million.

A Joint Venture comprising The Shipping Corporation of India Ltd. (SCI), Nippon Yusen Kabushiki Kaisha (NYK), Mitsui O.S.K. Lines, Ltd. (MOL), Kawasaki Kisen Kaisha, Ltd. (“K” Line), and Petronet LNG Ltd (PLL), have taken delivery of a new build Liquefied Natural Gas (LNG) carrier MT “PRACHI” having a capacity of 173,000 m3, from Hyundai Heavy Industries Co. Ltd. South Korea on 30th November, 2016. Simultaneously, the vessel has been delivered to Petronet LNG Ltd, New Delhi India’s first importer of LNG on a 19 year charter. Since 2004, Petronet has imported 5 million tons of LNG a year from Qatar, and an additional 2.5 million tons per year since 2009, using three LNG carriers.

A consortium comprising Nippon Yusen Kabushiki Kaisha (NYK), Mitsui O.S.K. Lines, Ltd. (MOL), Kawasaki Kisen Kaisha, Ltd. (“K” Line), and the Shipping Corporation of India Ltd. (SCI) took delivery of a new liquefied natural fas (LNG) carrier on November 30, 2016, in South Korea. The vessel, Prachi, has a capacity of 173,000 m3 and was built to order by Hyundai Heavy Industries Co. Ltd. based on a long-term time charter contract with Petronet LNG Limited (PLL). A naming ceremony for the ship was held on October 18, 2016.

Indian private-sector power utility Torrent Power is seeking 38 cargoes of liquefied natural gas (LNG) for delivery over four years beginning April 2017, in what is likely to be the firm's first import tender. The firm is seeking offers for 22 cargoes to be delivered to Dahej LNG import terminal on India's west coast between April 2017 and December 2019. It is also seeking 8 cargoes per year for delivery in 2020 and 2021, according to a copy of the tender document seen by Reuters. Each LNG cargo is to be between 125,000-175,000 cubic meters, the copy of the tender document shows. Sellers can offer the cargoes on either a fixed price basis, Brent-linked price formula or opt for a mix of both pricing options. The tender will close on Nov. 14.

Petronet LNG Ltd has annouced that the part facilities of the expansion of Dahej LNG Terminal from 10 tlko 15 MMTPA i.e. regasification facility has been commissioned and under stabilization.    As such the additional gas send-out from Dahej LNG terminal  in the north-west state of Gujarat has commenced. The balance part of the expansion i.e. two LNG storage tanks are likely to be completed by October, 2016.   Petronet LNG is one of the leading players in oil and natural gas industry space. It has India’s first and largest LNG supply terminal located at Dahej.

India is trying to renegotiate LNG deal with Australia and looking at lowering the price of liquefied natural gas it plans to buy from the Gorgon project, says a report form PTI. According to sources, when LNG deals are being done at 12 per cent or 12.5 per cent indexation, the Gorgon deal is certainly on the higher side. Hence the Oil Ministry instructed Petronet LNG, a private firm whose chairman is the oil secretary of India, to rework the price. Petronet had in August 2009 signed a 20-year deal to buy 1.44 million tonnes per annum of liquefied natural gas (LNG) at a price equivalent of 14.5 per cent of the prevailing oil rates. The indexation agreed was one of the highest in the world…

An increasing number of ships and vessels are using liquefied natural gas or LNG as a clean fuel to comply with the regulations laid by the International Maritime Organization (IMO) across emission control areas. LNG as a ship fuel reduces the emission of sulphur dioxide by 90-95% compared to the conventional petroleum fuels. This factor has propelled the growth of the global LNG bunkering market, says Transparency Market Research (TMR). The market stood at 70 kilo tons in 2013 and is anticipated to expand phenomenally at a CAGR of 63.6% during the period between 2014 and 2025. The overall market is projected to reach 22,540 kilo tons by 2025.

India’s largest importer of the chilled gas Petronet LNG has appointed Kapil Dev Tripathi, Secretary, Ministry of Petroleum and Natural gas as Chairman and Director on the Board of the company. The appointment follows the former Chairman and Director of the company Board, Saurabh Chandra’s resignation on May 6. Further the Company has informed that, Eric Ebelin has been appointed as Alternate Director to Philip Olivier. In a filing to the Bombay Stock Exchange the company informed “Kapil Dev Tripathi Secretary Ministry of Petroleum and Natural gas Government of India has been appointed as Chairman and Director on the Board of the Company w.e.f.

India has deferred taking deliveries of at least 20 shiploads of expensive liquefied natural gas (LNG) from its main supplier Qatar and wants a rate cut matching the 60 per cent fall in international rates, as global gas prices slumped, reports Reuters. Sources said that India has imported 30 per cent less liquefied natural gas (LNG) than it is supposed to under a long-term deal with Qatar as a slide in spot prices has cut demand from local buyers . So far this year Petronet LNG has cut imports by 30 per cent, or up to 24 cargoes, under the deal. Petronet buys 7.5 million tonnes a year of LNG on a long-term from RasGas of Qatar on a 25 year contract, indexed to a moving average of crude oil price.

GAIL (India) Limited has launched two tenders for up to 17 cargoes of liquefied natural gas (LNG) for delivery in western India reports Reuters quoting trade sources. The company is seeking five cargoes for deliveries in October to December at its 5 million tonne per annum (mtpa) LNG terminal at Dabhol in Maharashtra, the source said. In a second tender GAIL is seeking delivery of one LNG cargo a month in 2016 at either Dabhol or Dahej LNG terminal in Gujarat state, the sources said. Petronet LNG operates the 10 mtpa Dahej plant. Meanhile, GAIL has reportedly bought two cargoes of liquefied natural gas to be delivered in September. Sources told Reuters that the company acquired the two cargoes following a tender that was issued in July.

Oman Shipping Company (OSC) has performed the naming ceremony for two new product and chemical tankers – the Muscat Silver and Rustaq Silver. The ceremony took place at the Hyundai Mipo Dockyard in Ulsan, South Korea. OSC will now take delivery of the Muscat Silver as part of a deal which will see 10 MR tankers delivered to it over the next year. All the vessels will be chartered to Shell International Trading and Shipping Company Ltd for its Project Silver, which consists of 50 new-builds. They will each operate worldwide with 20-strong crews - including a number of Omani officers. The Muscat Silver and Rustaq Silver are both 183 metres in length and 32.2 metres wide, with a depth of 19.1 metres.

Qatar-based natural gas producer RasGas will not penalise Petronet LNG for lower offtake of the fuel, says a report by PTI. Qatar has agreed to waive $1 billion penalty on India for breaking a long-term LNG contract, and has also consented to change the pricing formula to reflect the slump in global energy rates. After months of intense negotiations, RasGas of Qatar has agreed to not to press for the $1 billion in penalty that Petronet LNG, India’s biggest import of liquefied natural gas (LNG), has to pay for buying only 68 per cent of the contracted 7.5 million tonnes this year. In a filing to the stock exchange, Petronet said that it is in discussion with RasGas over the ‘current issues under their agreement. However, no biding agreement has been executed’ yet.