Petronet LNG allays Street's concerns on hydrocarbon investments in US

Details about deal size will be finalised by March, could stretch the company's balance sheet if it goes solo

Petronet LNG’s clarification regarding its non-binding memorandum of understanding (MOU) with Tellurian Inc of the US for gas supplies has allayed some concerns on its proposed hydrocarbon investments in the world’s largest economy. The stock trimmed Monday’s losses and closed 1.31 per cent up on Tuesday. Analysts feel that prima facie the company may not proceed with the investment in absence of gas off-take and other financial assurances from its domestic promoters. Nonetheless, the Street will remain watchful till finalisation of the deal, which is expected by March 2020.

The company’s non-binding MoU envisaging a liquefied natural gas (LNG) purchase