Informist, Tuesday, Jul 2, 2024
--Sources: Arcelor books 30 spots at Petronet LNG's Dahej terminal
--Sources: Arcelor buys Dahej LNG spots from Gujarat State Petro Corp
--CONTEXT: Arcelor Mittal Nippon Steel books LNG berths for Hazira unit
--Sources: 30 LNG spots at Dahej to cost Arcelor 6 bln rupees
--Sources: Arcelor to use 30 LNG spots at Dahej over 5 years
By Sunil Raghu
AHMEDABAD - Steel major Arcelor Mittal Nippon Steel has entered into an agreement with Gujarat State Petroleum Corp Ltd to book 30 berthing slots for liquefied natural gas ships at Petronet LNG Ltd’s Dahej terminal over the next five years, multiple sources told Informist.
“Arcelor Mittal will take over these slots from Gujarat State Petroleum Corp and could cost it a little less than 6 bln rupees in all,” one of the state government officials said. “This booking would help it streamline the supply of natural gas for its Hazira integrated steel plant.”
Arcelor Mittal Nippon Steel runs a 9 mtpa integrated steel manufacturing facility at Hazira, about 135 km from Dahej. It produces flat steel products, including hot-rolled, cold-rolled and galvanised steel. Arcelor Mittal Nippon Steel uses about 4 mscmd of natural gas at its Hazira plant, according to another official. Of this, half is domestic natural gas and the remaining is imported liquefied natural gas. The quantum of LNG imported is equal to 8 mid-sized LNG ships per annum.
Arcelor Mittal booked the slots from Gujarat State Petroleum Corp as the latter has a contract with Petronet LNG to utilise 20 slots per year on a ‘use-or-pay’ basis at the 17.5 mtpa Dahej LNG terminal.
Companies book capacity at Petronet LNG's Dahej terminal to berth the LNG tanker, store the gas and then re-gassify it before pumping it out of the terminal through pipelines. The parties sign a 'use-or-pay' contract, wherein the companies booking LNG handling facilities need to pay for the entire capacity booked and not just the capacity they end up using. On average, these companies pay 200 mln rupees to Petronet LNG for each cargo. Petronet LNG has contracted for 280 such slots per year from which it could earn nearly 56 bln rupees in revenue.
“Instead of Dahej, Gujarat State Petroleum Corp could now look to berthing some of its LNG ships in Mundra, where it has a 5 mln tn per annum LNG terminal, from where it supplies natural gas to its subsidiary Gujarat Gas Ltd and others such as Reliance Industries Ltd,” one of the state government officials said.
At 1441 IST, shares of Petronet LNG traded 1.4% higher at 338.85 rupees on the National Stock Exchange.
End
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Informist, Tuesday, Jul 2, 2024
--Sources: Arcelor books 30 spots at Petronet LNG's Dahej terminal
--Sources: Arcelor buys Dahej LNG spots from Gujarat State Petro Corp
--CONTEXT: Arcelor Mittal Nippon Steel books LNG berths for Hazira unit
--Sources: 30 LNG spots at Dahej to cost Arcelor 6 bln rupees
--Sources: Arcelor to use 30 LNG spots at Dahej over 5 years
By Sunil Raghu
AHMEDABAD - Steel major Arcelor Mittal Nippon Steel has entered into an agreement with Gujarat State Petroleum Corp Ltd to book 30 berthing slots for liquefied natural gas ships at Petronet LNG Ltd’s Dahej terminal over the next five years, multiple sources told Informist.
“Arcelor Mittal will take over these slots from Gujarat State Petroleum Corp and could cost it a little less than 6 bln rupees in all,” one of the state government officials said. “This booking would help it streamline the supply of natural gas for its Hazira integrated steel plant.”
Arcelor Mittal Nippon Steel runs a 9 mtpa integrated steel manufacturing facility at Hazira, about 135 km from Dahej. It produces flat steel products, including hot-rolled, cold-rolled and galvanised steel. Arcelor Mittal Nippon Steel uses about 4 mscmd of natural gas at its Hazira plant, according to another official. Of this, half is domestic natural gas and the remaining is imported liquefied natural gas. The quantum of LNG imported is equal to 8 mid-sized LNG ships per annum.
Arcelor Mittal booked the slots from Gujarat State Petroleum Corp as the latter has a contract with Petronet LNG to utilise 20 slots per year on a ‘use-or-pay’ basis at the 17.5 mtpa Dahej LNG terminal.
Companies book capacity at Petronet LNG's Dahej terminal to berth the LNG tanker, store the gas and then re-gassify it before pumping it out of the terminal through pipelines. The parties sign a 'use-or-pay' contract, wherein the companies booking LNG handling facilities need to pay for the entire capacity booked and not just the capacity they end up using. On average, these companies pay 200 mln rupees to Petronet LNG for each cargo. Petronet LNG has contracted for 280 such slots per year from which it could earn nearly 56 bln rupees in revenue.
“Instead of Dahej, Gujarat State Petroleum Corp could now look to berthing some of its LNG ships in Mundra, where it has a 5 mln tn per annum LNG terminal, from where it supplies natural gas to its subsidiary Gujarat Gas Ltd and others such as Reliance Industries Ltd,” one of the state government officials said.
At 1441 IST, shares of Petronet LNG traded 1.4% higher at 338.85 rupees on the National Stock Exchange.
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.