ADB extends loan for Petronet LNG expansion

NEW DELHI: Manila-based Asian Development Bank and German development bank KfW have agreed to provide a loan of Rs 675 crore ($169 million) to Petronet LNG Ltd to fund expansion of its LNG terminal.

KfW will assume 50 per cent of the debt service risk on the loan by way of risk participation, ADB said in a release.

Petronet provides about 25 per cent of the total gas supplies in the country and is operating at a capacity of 6.5 million metric tons per annum against the installed capacity of 5 million metric tons per annum.

In response to the surging demand, the company is expanding its Dahej LNG terminal to double the capacity by 2009 and is developing another terminal in Kochi, Kerala.

Re-gasified LNG is supplied to power, fertilizer and other industrial users in north and west India.