Tor­rent to use Petronet’s Da­hej ter­mi­nal for im­port­ing LNG

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Tor­rent Power Ltd has signed an agree­ment to use Petronet LNG Ltd's Da­hej im­port ter­mi­nal in Gu­jarat to ship one mil­lion tons of LNG ev­ery year from 2017. Petronet, which is ex­pand­ing its 10 mil­lion tons a year LNG im­port fa­cil­ity to 15 mil­lion tons by 2016-end and a fur­ther to 17.5 mil­lion tons in fu­ture, signed the agree­ment to lease out ca­pac­ity to Tor­rent Power for 20 years.

"Petronet LNG Ltd and Tor­rent Power Ltd have ex­e­cuted long term ca­pac­ity book­ing agree­ment for 1 mil­lion tons per an­num from Da­hej ter­mi­nal for a pe­riod of 20 years start­ing in 2017," the com­pany said in a stock ex­change fil­ing.

The agree­ment al­lows Tor­rent to use the Da­hej ter­mi­nal to im­port LNG con­tracted by it. While Tor­rent will tie-up the sup­plies from over­seas sell­ers, Petronet will earn a tolling charge.

Petronet had pre­vi­ously signed sim­i­lar ca­pac­ity leas­ing agree­ments with state-owned gas util­ity GAIL In­dia Ltd, Gu­jarat State Petroleum Corp (GPSC), In­dian Oil Corp (IOC) and Bharat Petroleum Corp Ltd (BPCL).

It had leased 2.5 mil­lion tons per an­num ca­pac­ity to GAIL, 2.25 mil­lion tons to GSPC, 1.5 mil­lion tons to IOC and 1 mil­lion tons to BPCL.

Petronet Di­rec­tor (Fi­nance) R K Garg said while GSPC has started us­ing 1.25 mil­lion tons of the hired ca­pac­ity, the rest will start us­ing it once the ex­pan­sion is com­pleted.

The com­pany cur­rently buys 7.5 mil­lion tons a year of liq­ue­fied nat­u­ral gas (LNG) from RasGas of Qatar on a longterm con­tract.

Be­sides block­ing ca­pac­ity for this vol­ume, it is leas­ing out ca­pac­ity to users, he said.

State-owned GAIL, IOC, BPCL and Oil and Nat­u­ral Gas Corp (ONGC) hold 12.5 per cent stake each in Petronet LNG Ltd, the na­tion's big­gest liq­uid gas (LNG) im­porter.

Petronet also has a 5 mil­lion tons a year LNG im­port ter­mi­nal at Kochi in Ker­ala and is plan­ning to set up a sim­i­lar ca­pac­ity ter­mi­nal at Gan­gavaram in Andhra Pradesh.

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