Petronet LNG held a conference call on 10 February 2022 to discuss the results for the quarter ended Dec'21 and way forward. Mr V K Mishra - Director (Finance), Mr Rakesh Chawla - GGM & President (F&A), Mr G K Sharma - CGM & VP (Marketing), Mr Debabrata Satpathy - GM (F&A), Mr Vivek Mittal - GM (Marketing) and Mr Ashwani Agarwal - Manager (F&A) of the company addressed the call.

Highlights of the Concall

• Dahej terminal capacity utilisation was 86% in Q3FY22 as compared to 97% in Q3FY21 and almost 99% in Q2FY22

• Dahej terminal volume was 196 thousand btu (TBTUs) in Q3FY22 as against 225 TBTUs in previous quarter and 222 TBTUs in corresponding previous year quarter

• Total volumes during the quarter was 208TBTUs including Dahej and Kochi terminal as against 240 TBTUs in previous quarter and 235 TBTUs in corresponding previous year quarter

• Total volumes during 9MFY22 was 657 TBTUs as against 679 TBTUs in 9MFY21

• Customers have the flexibility to bring in cargoes quarter to quarter in a calendar year. And at the yearend also if they are not able to bring in cargoes from January to December, then at the end of December the company levy user pay charges to the customers. Customers are not allowed to shift the cargoes to next calendar year as per the contract.

• The company is under discussion regarding Kochi tariffs and expects it to be settled by Q4FY22

• The company is doing pre feasibility study and is reviewing the east coast project

• LNG prices are still very high as far as spot gas is concerned. So to bring sport cargoes is a real challenge as prices are still around US $ 25-26 per mmbtu. However the long term volumes are coming as per schedule.

• The company is working on a petrochemical project for investment. The company is hopeful the consumption of petrochemical products will increase in future as consumption of polymers or plastic is very low as compared to world average.

• The company is looking at producing 500 thousand tonne per annum polypropylene and an another product of 750 thousand tonne per annum

• The company is building two LNG tanks at Dahej at cost of Rs 1245 crore, third jetty at Dahej at an investment of Rs 1650 crore.

• The company plans to expand Dahej terminal from 17.5 million-tonne per annum (mtpa) to 22.5 mtpa in 3 year period. This will done in two phases – 17.5 mtpa to 20 mtpa and from 20 mtpa to 22.5 mtpa