Multilateral lending agency Asian Development Bank will extend a loan facility of $150 million to Petronet LNG, India's largest importer of liquid gas, to help the company part finance its expansion plans at Dahej LNG import terminal in Gujarat.
Petronet had commissioned the Dahej LNG terminal in 2004 with a capacity of 5 million tonnes per annum (MTPA) which it increased to 10 MTPA in 2009.
Now, the company is planning to augment capacity at Dahej facility to 15 MTPA at an estimated cost of Rs 2,950 crore by fiscal 2015-16.
In a statement, Siddhartha Shah, Principal Investment Specialist at ADB’s Private Sector Operations Department, said, "The expanded terminal will help India move toward its target of greater natural gas use, thereby enhancing its energy security and shifting to cleaner forms of energy.”
The project will help meet the demand of compressed natural gas for transportation, piped gas to households, fuel to gas-based power plants and feedstock for fertiliser plants, especially in north and west India.
Earlier in 2004, the foreign lending agency had offered fund to Petronet via an equity investment.
(Edited by Joby Puthuparampil Johnson)