Petronet LNG is in discussions to rope in strategic partner and offer up to 18 per cent stake in its proposed terminal at Gangavaram in Andhra Pradesh.
“We are looking at largely a producer or supplier of gas. Several well-known companies have got in touch and would like to have more information,” A K Balyan, Chief Executive Officer of the gas importing company told media persons.
Petronet would retain the majority stake of around 74 per cent. Another 8 per cent is held by the port. It is open to rope in an equity partner for remaining 18 per cent.
The company has completed pre-project activities and is in the process of short-listing engineering, procurement and construction (EPC) contractor for the proposed five million tonnes per annum (mtpa) terminal at Gangavaram.
Q1 results
The company reported 16.97 per cent lower net profit during April-June at Rs 225 crore (Rs 271 crore) against the same quarter previous year.
The decrease in net profit is primarily on account of lower margins and increase in internal consumption in plant.
“Petronet’s first quarter results were below our and street expectations. Its net sales grew by 20.1 per cent to Rs 8,377 crore mainly due to higher prices of liquefied natural gas (LNG) during the quarter,” said Bhavesh Chauhan, Senior Research Analyst at Angel Broking.
Petronet targets to offer contracts for expanding the capacity of Dahej terminal to 15 mtpa. It has achieved the financial closure for the expansion project through a rupee term loan of Rs 2,250 crore procured from State Bank of India and HDFC.
At the same time, the firm’s new five mtpa terminal in Kochi is set to be commissioned next month. However, due to lack of transportation infrastructure it would operate at lower capacity.
Petronet has tied up with Ras Gas of Qatar to import gas at Rs 5,000 crore new terminal at Kochi.