HomeEarnings NewsSee spot LNG price in $18-20/mmBtu range; volume to pick up in coming qtrs: Petronet LNG

See spot LNG price in $18-20/mmBtu range; volume to pick up in coming qtrs: Petronet LNG

In an interview with CNBC-TV18, Akshay Kumar Singh, MD & CEO, Petronet LNG, said that spot LNG prices should be in the range of $18-20/mmBtu. He mentioned that currently they are hovering around $25-30/mmBtu. He also mentioned that he expects volume to pick up in the coming quarters.

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By Sonia Shenoy   | Nigel D'Souza   | Anuj Singhal  February 10, 2022, 4:02:39 PM IST (Updated)

See spot LNG price in $18-20/mmBtu range; volume to pick up in coming qtrs: Petronet LNG
In an interview with CNBC-TV18, Akshay Kumar Singh, MD & CEO, Petronet LNG, said that spot LNG prices should be in the range of $18-20/mmBtu. He mentioned that currently, they are hovering around $25-30/mmBtu.


Singh highlighted that the high spot LNG prices have added to capacity utilisation issues to an extent, the rest of it was caused by COVID. However, he expects volumes to pick up in the coming quarters. Elaborating on capacity, he explained that the company’s Dahej terminal has been booked on a long-term basis. In fact, the terminal is currently 95 percent booked, whereas, in Q3, the figure stood at 86 percent.

He said, “For February-March, the spot prices are hovering around USD 25-30/mmBtu; last year it was USD 5-6/mmBtu, so definitely the prices are on the higher side. This is because of geopolitical issues in Europe, issues in Russia-Ukraine. Also, the Brent price is increasing and long-term prices are also going in the range of USD 11-12/mmBtu. Therefore, the future forecast as of today is that the spot LNG prices will be in the range of USD 18-20/ mmBtu and in the long-term, it will be USD 13-14/ mmBtu. So the gap is going to reduce and we expect that volume will pick up in the coming months and year.”

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The company recently posted its Q3 numbers. The company reported its highest quarterly net profit of Rs 1,159.46 crore as a surge in prices boosted margins. Consolidated net profit of Rs 1,159.46 crore, in the October-December quarter, was 31.4 percent higher than Rs 882.05 crore, in the same period of the previous fiscal. Meanwhile, its revenue from operations was up 72 percent at Rs 12,597.22 crore during the period under review.

Also Read: MGL in wait and watch mode for further price hikes; says co passing on LNG rate increase to customers

On the company’s Q3 performance, Singh said that revenues have come in higher due to better trading margins. Detailing the company’s strategy, he said that they usually reconcile the use or pay contact with customers at the end of every year.

Watch the video for the full interview.

(With PTI inputs)
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