India’s Petronet LNG Ltd has no plans to invest in liquefied natural gas (LNG) developers as the market is awash with cheaper fuel, its finance chief said, indicating it may shelve plans to invest in Tellurian Inc’s US project.
Petronet, the country’s top gas importer, has time until December-end to consider investing $2.5 billion for 5 million tonnes per annum (mtpa) of LNG in Tellurian’s Driftwood project to end-2020.
“Right now, we get LNG at throwaway prices so there is no need to go for an investment … you should be more concerned with LNG than investment,” VK Mishra said at an analyst conference on Thursday.
This is a non-binding memorandum of understanding and there is no commitment, Mishra said, adding that the company is in talks for new long-term LNG contract linked to spot prices.
