(ET)
State-run Petronet LNGs $2.5 billion investment to secure 5 million tonnes of liquefied natural gas (LNG) from Tellurian is unlikely work to the advantage of India as the first set of gas from the the US-based natural gas companys Driftwood project would reach Indian shores only by fiscal 2023-24.
As per analyst presentations given by Tellurian, the first phase of the 27.6 million tonne per annum (mtpa) Driftwood project will be able to deliver LNG only in 2023. This would mean that Petronet will have to wait for LNG under a long term contract for four long years. The wait is long, given competitively priced LNG is available in plenty in the spot market to meet immediate energy needs of the country.
“The Petronet board in February had disapproved equity investment for securing LNG from the proposed Driftwood project of Tellurian. This was done as gas was available in plenty in the the spot market at rock bottom prices. Locking the company into a 40-year contract for LNG sourcing was considered unproductive. How the deal will work to the company’s advantage now needs to be seen,” said a company source who did not wish to be identified.
