Dec 27, 2011 04:27 PM IST | Source: CNBC-TV18

Spot LNG prices to soften further in 2012: Petronet LNG

Sharing details of the company's expansion plans, A Balyan, CEO and Managing Director of Petronet LNG said the Hague expansion plan is on track, and the bidding process is likely to start around March-April.

Sharing details of the company's expansion plans, A Balyan, CEO and Managing Director of Petronet LNG said the Hague expansion plan is on track, and the bidding process is likely to start around March-April.

The company has seen a robust 35% growth last quarter and going forward, Balyan said the volumes will be maintained at Q2 levels. "The main driver for the company until now has been high LNG volumes. And, the demand for gas is growing as per projections and expectations and hence, we can maintain these kinds of volumes right now," he reiterated.

Lowering concerns on fast moving prices, Balyan further added that the LNG prices are not really reflecting the right over capacity in the world. "The LNG capacity is much more than the consumption or demand. Hence, I expect spot LNG prices to be reduced in the upcoming year," he added.

Below is an edited transcript of A Balyan's interview to CNBC-TV18. Also watch the accompanying video.

Q: What exactly is happening in terms of your expansion plans? How would you line out capex going into the next year and the year after?

A: The Hague expansion plan has been approved by the board. We have completed DFR and there are two components that we are looking at

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