Petronet may buy LNG from spot market

Petronet LNG Ltd, the country's first importer of natural gas, said it may make short purchases of liquefied natural gas (LNG) from the international spot market in the coming financial year to bridge the growing demand-supply gap in the local market.

Petronet LNG executives said at a press conference here that GAIL (India) Ltd and IndianOil Corporation, the two primary buyers of LNG being imported from RasGas of Qatar, have indicated an additional demand of one million tonne. The two have already booked the first year import of 2.5 million tonne, they said.

Both GAIL and IOC have a financial interest in Petronet. Petronet LNG director (finance) P Dasgupta said that the first year import quantities had already been booked by non-fertiliser and non-power customers. But there is a fresh demand from power and fertilizer companies.

He said RasGas has been approached to help meet the fresh demand. But the Qatar firm may not be in a position to help, forcing Petronet LNG to tap the spot markets in Abu Dhabi and Oman. Meanwhile, the company is increasing its existing capacities.