In an interview with CNBC-TV18, RK Garg, Director-Finance at Petronet LNG spoke about the latest happenings in his company and shared his outlook for FY18.
Petronet LNG has been buzzing off late and it is just a few points away from its 52-week high of Rs 441. Brokerages too are positive on the outlook.
In an interview with CNBC-TV18, RK Garg, Director-Finance at Petronet LNG spoke about the latest happenings in his company and gave his outlook for FY18.
Below is the verbatim transcript of the interview.
Sonia: Let us talk about demand because it has been extremely strong for you especially in the fiscal gone by what is the expectation as far Dahej volumes are concerned for FY18?
A: The demand of LNG in the country is growing year-by-year. As far as Dahej terminal is concerned, it's operating normally at capacity and sometimes above the capacity.
Overall LNG consumption in the country was around 19 million tonne and a major part of that had come to Dahej terminal. However, same thing we are seeing, going forward, at our Dahej terminal.
Latha: You are saying that in FY17 your volume was 19 million tonne?
A: I am not saying that. 19 million tonne was imported totally in the country and quite a major quantity has come to our terminal in addition to other terminals operating.
Latha: The growing expectation on the street is that for FY18 you would do 17 million metric tons per annum (MMTA). Is that reasonable?
A: I am not sure because currently we are at 15 million tonne LNG terminal and we are expanding to 17.5, the construction is going on for that and it may take two years more to complete.
Sonia: Are we looking at tariff increase anytime soon?
A: We have normal tariff which is already agreed. However, some marginal increase happens every year as per contractual provision so that we have 5 percent increases.
Latha: What is the demand growth or volume growth you are expecting in '18-19?
A: The way the economy is growing and natural gas demand is growing in the country, we have limited availability of domestic gas during this period. Therefore, I hope we will have more demand of LNG in the country. Our Dahej and Kochi terminal which today is not operating at a level it is desired, so some demand would be there.For entire interview, watch accompanying video.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.