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c APAc It Ies

          Dahej plant already running

          at 110% capacity

                                       One cannot write off the Qatar
                                       investment plan as good sense may
                                       prevail on both sides, says Prabhat
                                       Singh, MD & CEO, Petronet LNG.
                                       Edited excerpts:

          How are you utilizing the capacities?                We are also hearing that your investment plans in
          By and large we have been able to maintain the       Qatar have slowed down because you could not reach
          plant well and we have been running Dahej at 110%    an agreement relating to the molecular pricing. Are
          capacity. We have continued to have good profits.    you calling it off?
                                                               No. The point is in good sense that may prevail in both
          How were the volumes for this quarter and what is    the parties and we may end up actually doing a good
          your outlook going ahead?                            deal because there is a strong case. I am looking at it
                                                               from one perspective and Qatar is looking at it from
          This quarter we have maintained virtually the same
          volumes as it was in the last quarter. These volumes will   a different perspective. If we both look at the same
          continue in the same manner till the time our expansion   perspective, perhaps we may not conclude. But if they
          comes up because today we are operating at the       start seeing value in what we are proposing and we start
          highest capacity. It may be unsafe to operate at a higher   seeing value in them and if we conclude, then Qatar is
          capacity than that.                                  a natural corollary to India because they are the closest.
                                                               We hardly spend 30-33 cents in transportation cost.

          What channel do you think Indian companies will
          adopt to purchase oil from Iran? There were talks                                    Source: Economic Times
          of trading in exchange of rupee. Do you see that
          If there are sanctions, then less and less oil comes into
          the market. The price per barrel may go high and the
          price barrel goes high, then obviously the pricing since
          it is indexed to that would be higher. If the spot in the
          short-term prices become lesser than that, then we may
          have a stretch. Otherwise, till now whatever we have
          seen is that the long-term contracts are picked up by
          everybody. In H1, we have not faced any problem about
          not lifting of the cargos. I anticipate that it will continue
          like that.

         10   November 2018 - January 2019 LNG TODAY
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