LinkedIn emplea cookies para mejorar la funcionalidad y el rendimiento de nuestro sitio web, así como para ofrecer publicidad relevante. Si continúas navegando por ese sitio web, aceptas el uso de cookies. Consulta nuestras Condiciones de uso y nuestra Política de privacidad para más información.
LinkedIn emplea cookies para mejorar la funcionalidad y el rendimiento de nuestro sitio web, así como para ofrecer publicidad relevante. Si continúas navegando por ese sitio web, aceptas el uso de cookies. Consulta nuestra Política de privacidad y nuestras Condiciones de uso para más información.
eINDIA 2014 - Public Sector Undertakings (PSUs) Contributors to Economic Development - T N Neelkantan, Vice President (OM) & Plant Head (Kochi), Petronet LNG
PUBLIC SECTOR ENTERPRISES -
CONTRIBUTION TO ECONOMIC
ROLE OF PETRONET LNG IN THE ENERGY ECONOMY
T N Neelakantan
Vice President(Plant Head)
Petronet LNG Limited
PUBLIC SECTOR ENTERPRISES - CONTRIBUTION TO
The Indian Public Sector has always played a dominant role in shaping
the path of the country’s economic development.
Prior to independence very few PSU’s in the country with its presence
primarily confined to Railways, Post & Telegraph and the Ordinance
Visionary leaders of independent India drew up a road map for the
development of PSU as an instrument for self-reliant economic growth.
PUBLIC SECTOR ENTERPRISES - CONTRIBUTION TO
The Central Public Sector Enterprises (CPSEs) have been the
mainstay of the Indian economy and were set up with the mandate
serve the broad macro-economic objectives of higher economic
achieve self-sufficiency in production of goods/services
facilitate long term equilibrium in balance of payments
ensure stability in prices and create benchmarks for prices of essential
ECONOMIC DEVELOPMENT - Contd.
PUBLIC SECTOR ENTERPRISES - CONTRIBUTION TO
ECONOMIC DEVELOPMENT - Contd.
With the onset of economic reforms in 1991, the Government initiated
a systemic shift to a more open economy with greater reliance upon
market forces and a larger role of the private sector including foreign
CPSEs were exposed to competition from domestic private sector
companies as well as large multi-national corporations. Given the
competitive environment, the CPSEs undertook significant initiatives
for up scaling technologies and capacities in order to operate at par
with the private counterparts in the liberalized economy.
With continued focused efforts towards achieving excellence, several
of the CPSEs have become self reliant and are playing a critical role in
building the Indian economy.
KEY PSE CONTRIBUTION TO INDIAN ECONOMY
Contribution to Central Exchequer
Contribution to foreign exchange earnings
Towards employment generation
Emerged as a major wealth creators or investors/stake holders based on
growth witnessed in market capitalization
Pioneering CSR activities
As one of the fastest growing economics of the world, India is an upward
growth trajectory leading to a steadily growing demand for Energy.
The Demand for Energy matches our economic growth rate of 6-7 %. Energy
being vital engine of growth, the challenge is to ensure a steady flow of
reliable, clean and affordable energy for a smooth journey to greater
CREATION OF PETRONET LNG LIMITED
Government of India’s unique initiative : Cabinet decision on July 4,
Meet the growing energy requirements of the country with special focus on
Natural gas consumption limited by available supplies from domestic sources
Un-explored potential from domestic sources
Inability to secure supplies through transnational pipelines
The Government of India mandated (Public Private Partnership Model)
Set up LNG regasification terminals at: Hazira / Dahej ; Kochi / Kayamkulam,
Ennore or any other suitable location
Participate in integration projects upstream & downstream of LNG terminals
PETRONET LNG LIMITED
Incorporated on April 2, 1998
Authorized Capital Rs.1200 Crore
Paid up capital Rs.750 Crore
Commencement of Commercial Operations - April, 2004
50% held by Oil & Gas PSUs (BPCL, GAIL, IOC & ONGC)
10% held by GDFI (part of GDF SUEZ)
Public & FIIs
INDIA – A MAJOR GAS/LNG CONSUMER
15th largest gas consumer – 51bcm (~138 mmscmd)
4th largest LNG importer – 18 bcm (~48 mmscmd)
Economy growing at CAGR of about 6% with similar growth in Energy Consumption
Share of Natural Gas in Indian Energy basket to increase from 9% to 20% by 2025
Despite increase in domestic gas production- dependency on imported gas to increase
Pipeline network- developing into a national grid- needs to grow faster, connecting new
Sector 2013-14 2014-15 2015-16 2016-17 2019-20
Power 104 122 139 157 202
Fertilizer 60 60 72 97 106
City Gas 16 17 18 22 36
Industrial 20 22 25 27 35
40 42 44 47 54
Sponge Iron/Steel 8 8 8 8 10
248 272 307 358 443
SECTOR WISE PROJECTED GAS DEMAND
Source : BP Statistical Review June 2014 & Vision 2030, Natural Gas Infrastructure in India
2013-14 2014-15 2015-16 2016-17 2019-20
/ Internal Cons.
Sponge/ Iron/ Steel
Gas Demand (mmscmd)
As a result of the foresight of Government of India & PLL’s promoters
within a short span of time since its inception, PLL has
Firmly established itself as an important player for meeting
India’s energy requirements
Successfully developed India’s first LNG terminal at Dahej
o Competitive project costs
o No Time or Cost overruns
Owner of 7.5 MTPA of LNG from Qatar, largest SPA in the world (25
Also, executed 1.5 MMTPA LNG SPA with Exxon Mobil – Gorgon,
Set new benchmark for LNG pricing in Asia – Rasgas Contract
No price escalation till 2008
Fixed at crude oil level of $20/bbl till 2008
2009 onwards pricing linked with JCC with Floor & Ceiling – still very
Continuously making profits– favourable Balance Sheet
Market capitalization reached over to US $ 2.2 billion (Rs. 10,000 crores)
Gains to Promoters over Rs. 5,000 crores
TOWARDS THE VISION
To be a key energy provider to the nation by
leveraging unique position in the LNG value-chain
with international presence
Revenue grew 32% EBITDA
1284 1914 2205
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Create and manage world-class
Continue excellence in LNG
- Focus on higher capacity
utilization and better
- Diversify LNG sources
- Wind Farm
- City-gas distribution/ direct
- Air Separation Unit
- Solid cargo port at Dahej
- Wind Energy
Maintain highest standards of
ECONOMIC VALUE GENERATED 2013-14
Economic Value Generated INR crores 31,649.15
Revenue from operations INR crores 31,467.44
Other income INR crores 181.71
Economic Value Distributed INR crores 30,499.87
Cost of Materials consumed INR crores 23,383.55
Employees Benefits and Wages INR crores 37.01
Payment to providers of Capital(Dividend) INR crores 187.50
Payment to government INR crores 5,921.44
Community Investments INR crores 2.41
Economic Value retained (Profit after Tax) INR crores 1,149.28
RATING AND RECOGNITION
Ratings & Ranking:
Moody’s International Rating Baa3
CRISIL Rating AA+
Rated AA+ by Fitch and ICRA rating
36th rank in ET (2012-13)
37th rank Fortune India 500 (2012-13)
109th Largest Company & 214th most
Profitable Company in Plimsoll Global
Analysis on Global Crude Oil & Gas
Extraction Industry ranking
Certificate of Appreciation from US
Environment Protection Agency for
maintaining low methane emissions
Petronet LNG Limited is the first Indian company to establish LNG imports into India.
Starting its operations in the year 2004, it has established itself as a credible energy
player importing large quantum of LNG into this energy starved Country.
This has helped meet the needs of the crucial fertilisers, power and refining sectors
of the country. PLL has already set up two large capacity LNG terminals in India and
is expanding further.
As on date, PLL supplies almost 30% of the total gas consumed in India.
India is an energy deficit nation and is dependant on imports of oil as well as coal. By
setting up the first LNG terminal in India, PLL has introduced an alternative model of
gas imports thereby saving precious foreign exchange - gas being cheaper than oil
Natural gas is a clean and green fuel and LNG is the purest form of gas. By supplying
gas to various industries, PLL has helped these industries substitute the more
polluting liquid fuels and has helped the environment.
Such large investments have been possible only through joint venture participation
by oil companies.
PLL has taken the onus of attempting to span the growing demand – supply gap
PLL has been pioneer in the Indian LNG supply market and played pivotal role in
changing Indian energy scenario for the last 10 years of operation.
As the first company in India to import LNG, PLL is instrumental in shaping the
growth of India’s Natural gas sector.
CSR – PARTNERING WITH COMMUNITY – DAHEJ
Participative community development programmes with State Govt in Luvara & Lakhigam villages
Health & Sanitation
Potable drinking water/water harvesting/laying of water pipelines/ Storm water drainage/solar street lights.
Preventive and Social medicine aids (includes Primary Health Centre & Ambulance).
Education and Employment generation programs
Sponsored laboratory to facilitate science stream education in the nearby school, Dahej.
Inauguration of Petronet LNG Centre for Vocational Rehabilitation.
Indirect employment for local villagers in the area of Housekeeping & Horticulture.
Renovation of personal facility & fencing at Panchayat office of Luvara Village, Gujarat.
Participation in Govt. Devp. Schemes (Kanya Kelvani, Beti Bachao) & Devp. Distt Civic Centre
Massive mangrove plantation to cover 1000 hectares by 2015-16 in consultation with Gujarat Ecology
Constructing of canteen at Government Hospital, Bharuch.
CSR – PARTNERING WITH COMMUNITY - KOCHI
Developing Infrastructure Facilities for displaced persons at RMP Todu Canal – Kalamukhi Junction
Rehabilitation Area in Puthuvypeen
Sponsored the distribution of books and other study material to nearly 70 schools of the area benefitting
Conducted Eye Screening & Cataract Operation & Dental Camp for Puthuvypeen & neighboring villages
Sponsoring of local events like boat race, cultural and sports events in schools
Sponsor purchase of school bus for Kerala Blind School.
Concreting & metalling of roads, side protection & repair/construction of culverts, footpaths in Puthuvypeen
Installation of Solar powered high mask lights in Puthuvypeen
Way Ahead for India
Development of regional LNG/GAS index to cater growing demand of emerging economies/
Indian sub continent.
Robust growth in Infrastructure development
Gas Pipelines on national & transnational basis
Participation by global players in India’s infrastructure development.
Government support & creation of Sovereign fund to handle stiff global competition enabling
acquisition of overseas upstream assets in stiff competitive environment.
Consumers mindset in pricing, supply security needs to undergo change : Market driven.
Develop alternate channels of distribution by road rail and barges/small ships to spread uniform
distribution of LNG for industrial, domestic, commercial and transport sectors.
Distribution constraints still major hurdle for NG
NG/LNG Demand & Constraints
Natural gas to comprise 20% of primary energy supply in 2025 against 9% presently
Demand to be met by LNG due to low domestic production, delay in imports through
Only two terminals at Dahej and Hazira in full operation.
Highly inadequate pipelines connectivity.
Problems LNG terminal face due to lack of down stream supply chain.
Delay in popularizing LNG distribution and direct use of LNG for NGVs.
Price sensitivity for use in Power and fertilizers sector.
LNG IN INDIA
“Vision 2030, Natural Gas Infrastructure in India” envisaged a
GDP growth of 6%
Current GDP growth of about 5-6% translate into overall energy
demand growth at CAGR of 6-7%
Given India’s growing energy requirements & unlikelihood of
matching increase in the domestic supplies, despite some
significant oil & gas finds recently, the import dependence is only
going to accentuate sharply in the coming years
LNG Regas Capacities
Presently, India’s LNG import capacity around 23.0 mmtpa
through 4 terminals & meeting more than 35% of total gas
supply of the country