Petronet in Talks With Cheniere for Long-Term LNG Supplies
Stock Chart for Petronet LNG Ltd (PLNG)
Petronet LNG Ltd. (PLNG), India’s biggest importer of liquefied natural gas, is in talks with suppliers in the U.S., including Cheniere Energy Partners LP, which has sold almost 90 percent of the annual export capacity it’s developing.
“Cheniere still has some capacity left,” A.K. Balyan, Petronet’s managing director, said in an interview in New Delhi today.
Cheniere has sold 16 million of the 18 million metric tons it proposes to export to BG Group Plc, GAIL India Ltd., Gas Natural SDG SA and Korea Gas Corp., Cheniere said in January. Petronet is expanding capacity and seeks new long-term supplies for its terminals on India’s west coast, Balyan said.
Spot cargo prices may ease this year as supplies increase, declining below $15 per million British thermal units, Balyan said. Japan, the world’s biggest LNG buyer, paid $798 a ton, equivalent to $15.35 per million Btu, last year, according to data on the website of the Tokyo-based ministry.
“Prices should fall because there’s more capacity in the market and companies are holding back supplies,” Balyan said.
The company is expanding its 10 million ton-a-year import terminal at Dahej in the western state of Gujarat to 15 million tons and is building a 5 million ton plant at Kochi in the south. The company is evaluating a new terminal at Gangavaram port on the east coast, it said in January.
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