Petronet LNG Ltd, India’s largest gas importer, saw its net profit fall by 25% in the first quarter of the fiscal year. The company reported a net profit of Rs 850.58 crore for April-June, down from Rs 1,141.58 crore in the same period last year. The dip was primarily due to lower LNG imports, driven by reduced power demand caused by early monsoon rains.
The Dahej LNG terminal in Gujarat handled 207 trillion British thermal units (BTUs) this quarter, a drop from 248 TBTUs in the previous year. Overall, the company processed 220 TBTUs compared to 262 TBTUs in the same quarter last fiscal. “LNG throughput was lower mainly because early monsoon rains reduced electricity demand, cutting the need for LNG-based power generation,” said CEO A K Singh during an earnings call.
The monsoon impact wasn’t the only factor. Fertiliser plant shutdowns also contributed to the decline. The Dahej terminal operated at 92% capacity this quarter, a drop from its record 110% utilisation last year. Demand is rebounding, though. City gas volumes are rising, and the petrochemical sector is showing stronger appetite. Singh noted that the Dahej terminal is already nearing full capacity again in Q2.
In fresh developments, Petronet’s board approved an investment of Rs 6,354.80 crore to build a new LNG terminal in Gopalpur, Odisha. Originally planned as a floating storage and regasification unit (FSRU) with a 4 million-tonne capacity, the project has now been upgraded to a 5 million-tonne land-based terminal. The shift was influenced by rising competition for FSRUs, especially as European nations snap them up to replace Russian gas.
The new terminal will take about three years to construct. Despite higher capital expenditure compared to the earlier FSRU plan, operating costs are expected to be significantly lower. The company also operates a 5 million-tonne terminal in Kochi, though it remains underutilized due to pipeline shortages.
While quarterly profits took a hit, Petronet remains focused on expanding its infrastructure to meet India’s growing energy needs. The Odisha terminal is a key step in that direction, promising better efficiency and cost management in the long run.