Money & Banking

Petronas to focus on meeting India’s demand for LPG, LNG

Our Bureau. New Delhi | Updated on October 28, 2020

Solar, storage and Hydrogen businesses are on the radar of Petronas, according to its President and Group Chief Executive Officer, Tengku Muhammad Taufik. Speaking at the India Energy Forum by CERAWeek, Taufik said Petronas is now being repositioned as a progressive energy player with a focus on the sustainable future. He also said that the group will focus on meeting India’s demand for Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG).

“We have import terminals at Haldia and Ennore, and it does tackle 30 per cent of all LPG imports into India. We also operate one of the largest LPG bottling plant in India, and it handles 30 per cent of the domestic LPG volumes.”

Commenting on the transition towards LNG, Taufik said: “Many regions and jurisdictions in Asia need to have an LNG quotation and transition policy as they switch, that will be the real energy solution.”

Highlighting the role of Amplus, Petronas’s solar venture in this, he said the group offers almost a package deal to aid the energy transition. Taufik said Petronas Group will also be entering the energy storage business. “We are looking at storage energy options and are identifying the technology we should adopt.” He added that the group is evaluating Hydrogen fuels as an offering for Petronas’s LNG consumers.

Demand for oil and gas

Sharing his outlook on the demand for oil and gas, he said: “We strongly believe that oil and gas will be meeting half the global energy demand by 2050; we still believe there is life and promise in this business. The only hardship there is producing this more cost-effectively, and that means taking a long hard look at our portfolio across 20 countries.”

Taufik said hydrocarbon exploration and production projects of the Petronas will now have to be profitable at least at $40 per barrel. “We need to draw the line at $40 a barrel as per our medium- to long-term outlook on averages. All of our projects, including those at early stage exploration, need to demonstrate that it can meet the criteria of being cost effective and cash positive at $40 a barrel,” he said.

“Together with that, being complemented by required measures to take into account emissions; in the worst-case scenario, we have projects to contend with the possibility of carbon tax. We price them anywhere between $40 to $60 a barrel depending on the geographies,” he added.

Published on October 28, 2020

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