Petronet aims to add Rs. 25,000 cr to topline in 3 yrs

“If we take even 10% of this market, it is enough to add an extra INR 25,000 crore to topline in three years,” Petronet LNG's MD & CEO Prabhat Singh told the paper.

Petronet LNG Ltd. is aiming to add Rs. 25,000 crore to its topline in the next three years by selling cheaper gas to consumers currently using liquid fuels such as naptha and fuel oil, reports a financial newspaper.

Nearly 190 million tonnes of liquid fuel is consumed in India annually. Of this, about 70 million tonnes is diesel. 

“If we take even 10% of this market, it is enough to add an extra INR 25,000 crore to topline in three years,” Petronet LNG's MD & CEO Prabhat Singh told the paper.

When the crude hovers comes to ~US$50/barrel, there would an arbitrage of ~US$6/barrel between gas and liquid fuels, Singhn said.

At present, US and Brent crude prices are at ~US$32 per barrel, making imported gas much cheaper. 

However, the price dynamics could vary from one consumer to another depending on the distance from the gas grid, Singh told the business daily.

The price for fuel oil is currently hovering ~US$5/mBtu, while that for naphtha is US$9/mBtu. On the other hand, the landed cost of LNG is ~US$7-7.5/mBtu.