GSPL hopes for 50% growth through two new LNG terminals in Gujarat

This will augment its gas sourcing from current 2.5 mmscmd to 3.6 mmscmd by next year

Even as Gujarat's energy basket is set to grow from 27% to over 30% by the end of this year, Gujarat State Petronet Ltd (GSPL) is anticipating a 50 per cent growth in its gas supply business.

GSPL is banking on the two upcoming LNG terminals; GSPC-Adani JV at Mundra and Swan Energy's Dahej of 5 mmtpa each. This will augment its gas sourcing from current 2.5 million metric standard cubic metres per day (mmscmd) to 3.6 million mmscmd by next year. 

"We are already sourcing from the existing LNG terminals such as Hazira. With the Mundra and Dahej terminals coming up, we will be able to enhance our sourcing as well," said T Natarajan, joint managing director, GSPL. 

Further, to cash in on the rising LNG capacity in the state, GSPL is also entering into an agreement with Swan Energy's SPV Swan LNG to pick up an 11 per cent equity stake in its terminal at Dahej which includes a floating storage regasification unit (FSRU). Board recently approved picking up of the stake in the Rs 4,000 crore project of Swan Energy even as a state government nod is now awaited.

"For instance, the Mundra facility is expected to be commissioned by early next year which should help us to ramp up our gas transportation business, too. We anticipate a 50 per cent jump in our business," Natarajan said further while adding that the same could rise further when the terminals achieve 100 per cent capacity utilisation which could take a few years.

While the new terminals will help GSPL bag an additional 12 mmscmd, the state owned company expects to grow in its existing business as well, thereby handling over 36 mmscmd. GSPL has already seen its gas transportation revenue jump by 16 per cent in the Q1 of this financial year over the previous one.