The Hindu Business Line : Petronet LNG ties up finances for Dahej expansion

Petronet LNG Ltd (PLL), one of the largest liquefied natural gas importer, said that it has successfully concluded additional financing and insurance arrangement for its Dahej terminal expansion.

According to a statement issued here, PLL said that the existing lenders to the Dahej project have reaffirmed their confidence by executing loan agreements for additional loan of Rs 1,233 crore and the non-fund based limits of Rs 400 crore for Dahej expansion to 12.5 million tonnes per annum (MTPA).

Financial closure

In the current rising interest rate scenario, the company has been able to achieve financial closure at a very competitive rate of 8 per cent per annum on non-recourse basis, the statement said.

The company also successfully concluded project insurance arrangements with its existing consortium of Indian insurance companies for the Dahej expansion with a premium outlay of less than 50 per cent over Phase- I project insurance.

Petronet, has executed loan agreements with lenders, thereby, achieving financial closure for the expansion, which would increase the terminal's capacity from 5 MTPA to 12.5 MTPA.

Premium sops

The Indian insurers and the overseas reinsurance markets have continued to appreciate the performance of the company by reducing the year-on-year premium of operational policies at a compounded rate of 25 per cent, the statement said.

PLL has been able to achieve substantial reductions despite hardened insurance markets post Gulf of Mexico

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