The Malaysian government-owned petroleum giant, better known as Petronas sees huge future for Liquefied Natural Gas in Indian market and is planning to make large investments as long-term supplier of LNG and petro-lubricants.
Petronas has been in business with Indian petroleum companies since two decades now; and it has spotted huge piece of pie for LNG sales in Indian market, so now the company wants to expand its operation in India. Currently, Petronas ship just 15 LNG cargos, which is nothing compared to its 30 million tonnes per year supply worldwide – making Petronas world’s third largest LNG supplier. Petronas’ largest exposure to India is through crude supply, with India being its largest crude supply market internationally. So it is time to expand in India through LNG.
The company is serious about these plans too as Petronas is setting up its headquarter for India at Delhi for the first time and has also appointed a general manager to boost the business. Talking about the scope in Indian market, Wan Zulkiflee, president and group CEO said during his visit to India, “India is a very exciting market for us given its growth rate of 7 per cent and that it is energy deficit. It is our largest market for crude and that relationship will continue. We are very bullish on petrochemicals, LNG and lubricant business in the country. Our lubricant business in India is very small, growth and market share are both in single digit, but we want to treble the business in the next five years
At present India contributes about $1.5 billion to the company’s total turnover of $50 billion and with LNG and lubricants, Petronas is expecting its Indian return to triple up within next five years. But triple profit comes with an investment as big as $150 million for lubricant business and $50 million for developing a plant in India by early 2018. The company is seeking big piece from India and such huge investment will boost Indian economy too – a win-win for both.