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Petronet plans LNG terminal on Indian east coast

23. September 2021

Petronet LNG Ltd. is India’s largest gas importer and plans to build an LNG terminal on India’s east coast to expand its business activities. The floating structure is to be built at Gopalpur Port in Odisha. Once it is completed, the company is looking into another facility for ethane and propane gas at Dahej. Petronet had previously planned to build a liquefied natural gas terminal in Gangavaram (Andhra Pradesh) in 2015-16, but management was unable to determine the project’s viability due to low volumes of only 5 million tons annually at the time. In Odisha, the Adani Group already operates an import terminal at Damra Port with 5 million tons of annual capacity. Imports of products and equipment subject to PESO certification will likely also expand in the face of the planned construction.

Due to an increased demand for gas, Petronet now also sees an opportunity to expand its business activities there on the east coast. Petronet signed a long-term contract with Qatar to supply 5 million tons of liquefied natural gas (LNG) annually. The natural gas is either a gas mixture of largely natural origin or with high proportions of ethane and propane. Both are important feedstocks for the petrochemical industry. Currently, the gas mixture is processed by Oil and Natural Gas Corp (ONGC) and resold to Petronet. Now Petronet wants to enter this business itself. Therefore, the company plans to build a refinery and similar facilities at the Dahej terminal, which receives the imported propane gas from ships. So far, Petronet did not provide any information on the amount of investment and capacity of the plant.
The total petrochemicals market in India is 42.5 million tons and is estimated to grow to 49.62 million tons in 2025. The combined annual growth rate (CAGR) is 6.14 percent within fiscal years 2021 and 2025, so it is reasonable to assume that demand for imported LNG will continue to grow as a result. Vessels for the storage of pressurized gases and liquids in India must be mandatorily certified according to the PESO guidelines. The experts at MPR International GmbH are available to answer your questions about PESO certification or other India certifications without obligation for an initial assessment.

If you are interested in understanding what requirements are needed for your product to be imported into India, please do not hesitate to contact us by email or phone at +49-69-271 37 69 261. There is no cost or obligation for us to check for you. If a certification need is discovered we can provide a quotation to make sure that all your certification needs are covered.
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For more information about PESO certification, please refer to our free brochure “PESO Certification Made Easy“.

MPR Author

About the author: Verena Numssen is managing director of MPR International GmbH
Publisher: MPR International GmbH

Tel.: +49 69 271 37 69 261