Petronet LNG, HLL Lifecare inks pact for LNG supply

Petronet LNG Ltd. | Industrial Gases & Fuels | Oil & Gas | BSE: 532522 | NSE: PETRONET

08 Jul 2011 Evaluate

Petronet LNG has signed a memorandum of understanding (MoU) with HLL Lifecare for long-term supply of Liquefied Natural Gas (LNG) to power HLL factories. This tie-up is meant to ensure uninterrupted energy supply for the operations of HLL Lifecare.

The gas will be used at HLL's factories at Peroorkada and Akkulam at Kerala and the company expects that this contract with Petronet will go a long way in developing and adopting current technologies in the manufacturing sector. Petronet will commence supplying the gas after commissioning their LNG terminal at Kochi.

HLL currently uses 10,000 kg of furnace oil per day for its boiler Plants. The LNG requirement of the company would be in the range of 1-1.2 tonne per day at the cost of Rs 2.8 lakh, which would mean Rs 10 crore a year.

Recently, Petronet LNG was eyeing US suppliers and was in talks with US companies including Cheniere Energy for LNG supplies. Also Petronet LNG in a bid to meet demand in the central and eastern parts of the country was eyeing to set up a LNG terminal on the east coast. The new LNG terminal, planned for the east coast of India, would have capacity of up to five million tonnes a year.

Petronet LNG is one of the leading players in oil and natural gas industry space. It has India’s first and largest LNG supply terminal located at Dahej. HLL Lifecare, a miniratna central public sector enterprise, is major producers of health and family planning goods and provider of wellness services.