Petronet buys into LNGC consortium

Indian importer takes 26% stake in SCI-J3 group that owns newly delivered Prachi.

Indian importer Petronet LNG has bought into a domestic/Japanese group that owns its newly delivered LNG carrier.

The company has snapped up 26% of the consortium, which also comprises Shipping Corp of India (SCI) and its partners NYK, MOL and K Line.

"We have now decided to take 26% equity in India LNG Transport," Petronet finance director RK Garg was quoted as saying by the Telegraph daily.

The 173,000-cbm Prachi (built 2016) was delivered in December from Hyundai Heavy Industries.

It has already delivered its first cargo from the Gorgon project in Australia to Petronet's Dahej terminal in Gujarat.

Garg said agreements for Petronet taking the equity have been executed and the money handed over.

"It is less than INR 1bn ($14.92m),” he added.

SCI now holds 26% of India LNG Transport, NYK 26% and the other Japanese investors 22%.

Prachi was the fourth vessel chartered by Petronet, with the other three all shipping in gas from Qatar. It has a 3% stake in one of them.

The report said the SCI-led consortium won the Gorgon tender by quoting a charter rate of $78,000 per day for 19 years.