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Petronet LNG of India commissioned two new LNG storage tanks at Dahej West coast of India

India’s Petronet LNG on Thursday announced the commissioning of two new LNG storage tanks, T-107 and T-108, each with a capacity of 1.8 lakh cubic meters, at its Dahej terminal on October 1.

In its report, brokerage firm Emkay Global highlighted Petronet's solid operational performance, particularly at the Dahej terminal. The terminal saw over 110 percent capacity utilisation in Q1 FY25, driven by demand from the power sector.

The brokerage also pointed to the upcoming ramp-up of Exxon's second 1.2mmtpa term contract and higher Kochi tariffs in FY26-27, leading to an upward revision in Petronet's earnings estimates. "Exxon's 1.2mmtpa second contract would commence, while Dahej expansion of 5mmtpa would also be commissioned," Emkay said increasing its FY26-27 EPS estimates by 7-9 percent.

While there have been concerns regarding tariff adjustments following the renewal of Petronet's QatarGas contract in CY28, Emkay believes the risks are being overplayed. "Petronet's management has reiterated any tweaking in tariffs would be minor and not affect minority shareholder interests," the report said.

In February, QatarEnergy and Petronet signed their largest-ever deal for LNG supplies as India aims to reduce emissions. Under the agreement, Qatar will supply 7.5 million metric tons of LNG annually to Petronet on a delivered ex-ship (DES) basis from 2028 to 2048, according to a statement by Petronet.

editor@lngworldwide.com