Petronet LNG to invest Rs 40,000 crore, eyes triple profit by 2028

Petronet investment plans: Petronet LNG Ltd, the operator of the world's largest liquefied natural gas (LNG) import terminal, announced plans to invest Rs 40,000 crore in expanding import capacity and petrochemicals with the aim of tripling net profit by 2028, revealed CEO A K Singh.

The company disclosed its entry into the petrochemical sector with a Rs 12,685 crore investment in a propane dehydrogenation plant and a Rs 2,300 crore LNG import facility at Gopalpur in Odisha. Additionally, it extended a deal to import 7.5 million metric tonnes of LNG from Qatar for 20 years and expressed interest in ventures such as a floating LNG terminal in Sri Lanka.

Investment strategy

Singh outlined the '1-5-10-40' strategy, targeting a turnover of Rs 1 lakh crore and a net profit of Rs 10,000 crore by investing Rs 40,000 crore over five years, starting from 2027–28. Presently, Petronet boasts a turnover of Rs 55,000–60,000 crore and an annual net profit of Rs 3,200 crore.

The company also aims to enhance the capacity of the Dahej LNG import terminal to 22.5 million metric tonnes with a Rs 600 crore investment, along with allocating Rs 1,245 crore for additional storage tanks and LNG truck loading bays. Plans for a 4 million-tonne LNG import terminal at Gopalpur port are also underway, shifting focus from a floating to a land-based facility.

The move reflects Petronet's strategic pivot to meet the rising demand for gas in the eastern region, previously overlooked due to insufficient demand. Petrochemical ventures using crude and natural gas as feedstock are also in consideration, positioning Petronet for significant growth in the energy and petrochemical sectors.

(with PTI inputs)