Kochi terminal benefits distant for Petronet LNG
Petronet LNG has gained 31.5 per cent since the closing lows of Rs 122.77 in May. The rise comes on the back of benefits accruing to the company from the steady rise in demand for gas. The supply, however, has been limited, given the falling production from the Krishna-Godavari (KG) basin.
The company’s volumes have risen 6.3 per cent to 135 trillion British thermal units (TBTU), or 2.6 million tonnes, in the September quarter, as compared to 127 TBTU in the June quarter. The company has 10 mtpa capacity at Dahej (Gujarat) and is likely to commission its five mtpa Kochi plant by the March 2013 quarter. However, in the absence of a proper pipeline infrastructure, the contribution from Kochi could remain limited to one mtpa, analysts say. Thus, the benefits from the new capacities will not accrue in the near term.