Petronet LNG Ltd is gearing up for a major investment cycle with a planned capital expenditure of around ₹9,000 crore for the current financial year, led largely by its upcoming petrochemical project at Dahej in Gujarat.
The company said nearly ₹7,500 crore of the planned capex, plus or minus 10%, will be directed towards the petchem project, making it the single largest investment focus for the year. Management expressed confidence about meeting the spending target as execution activities gather pace across multiple projects.
Infrastructure expansion gathers momentum
Apart from the petchem venture, Petronet LNG is also accelerating work on its third jetty project, where it plans to spend around ₹600 crore during the year.
The company is simultaneously preparing to commence construction activities at the Gopalpur terminal project, with planned investments of around ₹300 crore to ₹400 crore in the current fiscal.
The management said additional routine capex and small infrastructure upgrades will also continue alongside the large-scale projects.
Kochi expansion plans take shape
Petronet LNG is also expanding its small-scale LNG infrastructure footprint at Kochi. The company said land has already been acquired for its fifth small-scale LNG plant at Kochi, with planned investments of around ₹70 crore for the project.
In addition, the company is planning to construct another storage tank at Kochi involving an estimated capex of ₹1,200 crore.
Storage capacity becomes strategic focus
Management indicated that increasing storage infrastructure remains a core strategic priority for the company.
Alongside the Kochi tank expansion, Petronet LNG is also constructing two tanks as part of the Gopalpur project, aimed at strengthening long-term LNG handling and storage capabilities.
Gulf crisis creates near-term headwinds
Despite geopolitical challenges arising from the ongoing Gulf region crisis, the company said it delivered a resilient operational and financial performance during the quarter.
Management noted that LNG prices had briefly surged to nearly $25 following the crisis but have now moderated to the $15–$17 range, helping improve terminal utilization levels since early April.
Third-party cargoes support recovery
The company said improving utilization is being driven largely by additional third-party cargoes brought in by players including GAIL, IOCL, BPCL, GSPC and Torrent.
According to management, India’s growing gas demand and renewed demand from the power sector are also supporting higher terminal utilization despite continued geopolitical uncertainties.
LNG volumes remain strong
During the quarter, overall LNG volume processed by the company stood at 219 TBTU, compared with 233 TBTU in the previous quarter and 205 TBTU in the corresponding quarter last year.
At the Dahej terminal, LNG throughput stood at 201 TBTU during the quarter against 214 TBTU in the previous quarter and 189 TBTU in the year-ago period.
Dahej terminal maintains high utilization
The company said the Dahej terminal continued to operate at robust utilization levels despite regional uncertainties.
Capacity utilisation at the Dahej terminal stood at 90.1% during the quarter, compared with 93.8% in the previous quarter and 85.2% in the corresponding quarter last year.
Kochi terminal hits record throughput
Petronet LNG also highlighted a major operational milestone for its Kochi terminal. The terminal achieved its highest-ever annual volume throughput of 68 TBTU during FY26, which management described as an encouraging development for the company’s long-term growth plans.