IndianOil announces aggressive R-LNG plans
IndianOil is gearing up to significantly ramp up its R-LNG marketing business with plans to invest a staggering Rs7000cr ($1.17bn) during India’s 13th Five Year Plan ending 2022.
At a Mumbai press conference on September 15, IOC director planning and business development D. Sen said the company finds R-LNG marketing margins “attractive” compared to its traditional business of selling petrol, diesel, LPG and other fuels.
Presently, IOC has the right to offtake 30% from Petronet-LNG’s Dahej and Kochi LNG terminals. “In the last financial year (2014-15) IndianOil imported 3.4m t/y of LNG,” said Sen.
“This year we will be importing 4m t/y of which 30% will be spot cargoes.” IOC has booked or is in talks to book a total 8m t/y of capacity in several upcoming LNG import terminals.
“We’ve signed an agreement to book 1m t/y (for 20 years) in the (5m t/y) Jafrabad (FSRU) project (promoted by Swan Energy),” adds Sen. “We’ve also expressed interest in booking 1m t/y capacity in the (GSPC and Adani promoted) Mundra LNG terminal.
” Sen said talks are underway with Mundra promoters to convert the EoI into a “firm agreement” but gave no time frame. “Many details need to be finalised,” he said.
“This takes time.” IOC has also booked an additional 2.5m t/y capacity at Dahej, under expansion from 10m t/y to 15m t/y.