 "Petronas scouts for LNG opportunities in India")
Malaysia's national oil company Petronas plans to look for equity partnerships in the liquified natural gas (LNG) infrastructure segment in India. To expand its presence in the country, the company is also looking to secure long term LNG supply contracts.
"We are looking at options in the LNG infrastructure space like gas terminals and pipeline through equity partnerships in India," said Datuk Wan Zulkiflee Wan Ariffin, President & Group CEO for Petronas.
With over 30 million tonnes per annum supply capacity, Petronas is currently the third largest LNG player globally. However with around 15 LNG cargoes delivered to India, its exposure to India's LNG business so far is insignificant. At present, the company's LNG exposure to India is through the spot market. However, the company will focus on procuring long term LNG contracts in India.
India overall contributes close to $1.5 billion to the company's total turnover of $50 billion. Petronas' largest exposure to India is through crude supply, with India being its largest crude supply market internationally. It now looks to expand its presence in other segments like LNG and lubricants. In the lubricants segment, the company plans to triple its market share in India in the next five years. Ariffin added that the company's current lubricants market share in India is in single digits.
Commenting on any plan to invest in the exploration segment in India, Ariffin said, "No plans for exploration in India at the moment. Need to look at the terms and conditions in India."
In the petrochemical segment, the company is bullish on improving sales in India. "India is seeing a lot of consumer demand and has a long way to go. We have been supplying many types of chemicals to India and these are the feedstock of other downstream products in India," Ariffin said.
Ariffin and his entire executive team are in India on a week long trip to meet customers. The company officials also met non-oil and gas companies like Infosys and Paytm in India to adopt better digitisation practices for its operations back home.
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