Rs 670.06 crore profit recorded highest for Q1FY22 by Petronet LNG

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New Delhi: A profit of Rs 670.06 crore for Q1FY22 was recorded 34 percent high by Petronet LNG.

The consolidated total revenue during the period under review stood at Rs 8,666.47 crore, up from Rs 4,951.95 crore in the same period of Q1FY21.

Petronet LNG’s earnings have moved in tandem during the economic opening, and gas demand recovery with the ease of COVID-19 restrictions.

Stating on the impact on LNG demand as prices accelerated, Akshay Kumar Singh, MD, and CEO of Petronet LNG said that the major impact of price hikes is seen in the power sector.

A large amount of LNG is being used in the fertilizer sector which records an increasing demand.

Upon a query, Akshay Kumar Singh said that the LNG demand will increase in the future since domestic gas production is not going to sustain for a longer period

Petronet LNG plans to set up 1,000 LNG stations and to sell 4 million tonnes of LNG to the transport sector. At least, 3000 LNG stations in the country will be needed to offset 10 percent diesel demand, as the diesel might get replaced by LNG in the transport sector.

Singh said that the infrastructure for this exercise is being developed, and 4 LNG truck loading facilities at Dahej and one at Kochi are set up, followed by more needs.

The branding and setting up the mechanism of LNG retailing outlets that Petronet LNG is planning, have different workout models– Company-owned-Company-Operated (COCO) or sharing stations with existing oil marketing companies.

LNG price will be around $10 per mBtu, and will always remain a cheaper fuel.

Akshay Kumar Singh further said that Petronet LNG is working on a mechanism to cover up the fuel prices in the next two years.