Increase in Project Expenses for Petronet LNG's Gopalpur Facility Reaches Over ₹4,000 Crores
Published on July 25, 2025
Petronet LNG, India's leading LNG importer, has announced a significant increase in the project cost for its upcoming terminal at Gopalpur, Odisha. The decision comes as the company reported a 24% year-over-year drop in its consolidated net profit, amounting to around ₹842 crore in Q1 FY25.
The increased project cost, totalling over ₹4,000 crore, is primarily due to a shift from the initially planned Floating Storage and Regasification Unit (FSRU)-based terminal to a larger, land-based LNG terminal. This change in strategy will provide a more permanent and scalable infrastructure, offering better long-term operational capacity and flexibility.
The terminal's capacity was also increased from 4 million metric tonnes per annum (MMTPA) to 5 MMTPA, contributing to the higher project costs. The strategic location and infrastructure requirements for this greenfield LNG terminal on the East coast of India, at Gopalpur Port, Odisha, necessitate significant investment in land acquisition, construction, and supporting logistics.
The project is planned to be financed through a combination of debt and equity, with an estimated completion time of around 3 years. This decision underscores Petronet LNG's strategic intent to strengthen India's LNG import capacity and diversify its infrastructure beyond the west coast, despite recent challenges such as lower LNG demand impacting the company’s quarterly financials.
In Q1 FY25, the Dahej terminal processed 207 thousand British thermal units (tBtu) of LNG, a decrease from 248 tBtu in Q4 FY24. Consequently, the company reported a lower consolidated total income of approximately ₹12,096 crore in Q1 FY25, compared to ₹13,593 crore in Q4 FY24.
UoP dues, amounting to ₹1,421.56 crore (gross) and ₹814.01 crore (net) after making a provision of ₹607.55 crore, have arisen due to lower capacity utilisation by customers under long-term regasification agreements entered into by the Holding Company. The UoP dues pertain to FY23 (CY2022): ₹694.29 crore, FY24 (CY 2023): ₹610.00 crore, and FY25 (CY 2024): ₹117.27 crore.
The overall approved value of the project is ₹6,354.80 crore (including taxes and duties). Petronet LNG's consolidated net profit dropped to around ₹842 crore in Q1 FY25, a 24% year-over-year decrease. The company's net profit was down by 23% on a sequential basis.
The article does not provide information about the reasons for the company's subdued performance in Q1 FY25 or any other details about the land-based LNG terminal, such as its expected capacity or location.
- Petronet LNG, a significant player in India's business sector, is planning to finance its upcoming land-based LNG terminal at Gopalpur, Odisha through a mix of debt and equity, with an estimated completion time of around 3 years.
- The increased project cost for Petronet LNG's Gopalpur terminal, totaling over ₹4,000 crore, is attributed to a switch from an FSRU-based terminal to a larger, land-based LNG terminal, aiming for a more permanent and scalable infrastructure in the energy industry.
- In the finance world, Petronet LNG reported a 24% year-over-year drop in its consolidated net profit, amounting to around ₹842 crore in Q1 FY25, partly due to lower LNG demand and UoP dues from customers under long-term regasification agreements.
- The Gopalpur terminal's capacity has been expanded from 4 MMTPA to 5 MMTPA, causing higher project costs and necessitating significant investment in land acquisition, construction, and supporting logistics.
- Despite the challenges, Petronet LNG's decision to increase its LNG import capacity, even in the face of lowered profit margins, shows their commitment to strengthening trade relations through energy investment along India's East coast.
