Petronet LNG Limited — Q3 FY26

Petronet LNG Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=NAgsRQy2yWw Published: 3 months ago

0:02 2 seconds Ladies and gentlemen, good day and welcome to Petronet LNG Limited Q3 FY26 earnings call. As a reminder, all 0:10 10 seconds participants lines will be in the listenon only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:17 17 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your Touchstone phone. Please note that 0:25 25 seconds this conference is being recorded. I now hand the conference over to Mr. Chan Tari thank you and over to you. 0:33 33 seconds Thanks Ena. Good day ladies and gentlemen. On behalf of Philip Capital India Limited I welcome everyone to 0:40 40 seconds today's earning call. From the management team of NG we have the pleasure of having with us today Shri Saravra director of finance and CFO. Sri 0:50 50 seconds Rakkesh Tavla executive director finance and accounts. Sri Ganindan Kumar Sharma GGM and president marketing S. Vive Mr. 0:58 58 seconds GM and president marketing Shri Devat Sapati general manager FNA Shikas Meshwari deputy general manager FNA I 1:07 1 minute, 7 seconds will now hand over the floor to the management for their opening remarks which shall be followed by a question and answer session over to you sir. 1:17 1 minute, 17 seconds Yeah, good morning. I'm Savitra. 1:20 1 minute, 20 seconds Thank you for joining us for the earnings call for the quarter ended 31st December 2025. 1:27 1 minute, 27 seconds I'm pleased to share that the company has delivered a strong operational and financial performance during the current quarter supported by improved capacity 1:37 1 minute, 37 seconds utilization and operational efficiencies. 1:40 1 minute, 40 seconds During the quarter, the overall LNG volume processed by the company stood at 233 TBQ, reflecting a growth of 2% over 1:50 1 minute, 50 seconds both the previous quarter and the corresponding quarter where volume stood at 228 TB2 each. 1:56 1 minute, 56 seconds At the terminal, volume throughput during the current quarter was 214 TBQ 2:03 2 minutes, 3 seconds compared to 211 TBQ in the previous quarter and 213 TBQ in the corresponding quarter. 2:10 2 minutes, 10 seconds Capacity utilization at Zah improved to 94% up from 92% in the previous quarter and 93% in the corresponding quarter. At 2:20 2 minutes, 20 seconds Koshi terminal PLL achieved the highest ever capacity utilization of 29% during the current quarter. On the financial 2:27 2 minutes, 27 seconds front, the company reported PBT of rupees 1,144 2:34 2 minutes, 34 seconds cr for the quarter, registering a 5% growth of a PBT over the previous quarter 2:41 2 minutes, 41 seconds which stood at rupees 1083 crores. The PBT of the corresponding quarter stood 2:48 2 minutes, 48 seconds at 1169 cr. Profit after tax for the quarter stood at 848 cr reflecting a 5% 2:56 2 minutes, 56 seconds growth over PAT of rupees 8006 cr in the previous quarter. The PAT in the corresponding quarter was rupees 867 cr 3:06 3 minutes, 6 seconds for the 9 months ended 31st December 2025 the H process 632 DBQ as compared 3:13 3 minutes, 13 seconds to 686 DBQ during the corresponding 9 months. The overall LNG volume processed by the company during the current 9 3:22 3 minutes, 22 seconds months stood at 682 GBQ as again 729 GB in the corresponding period. During the 3:29 3 minutes, 29 seconds current 9 months, the company reported a PBG of rups 3,363 crores compared to rups 3,829 cr in the corresponding 9 months. 3:42 3 minutes, 42 seconds Profit after tax for the current 9 months stood at rupes 255 cr as against rups 2856 3:49 3 minutes, 49 seconds cr in the corresponding period. With this we open the house for the Q&A session. Thank you. 3:57 3 minutes, 57 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 4:05 4 minutes, 5 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. 4:15 4 minutes, 15 seconds Ladies and gentlemen, we will wait for a moment while the question queue assembles. 4:26 4 minutes, 26 seconds The first question comes from the line of Punit from HSBC. Please go ahead. 4:31 4 minutes, 31 seconds Uh yeah, thank you so much for the opportunity. My first question is if you can talk a bit about your uh you know contracts that you signed with for uh 4:40 4 minutes, 40 seconds ethane etc. What are the broad terms of of those? It will be very helpful. 4:47 4 minutes, 47 seconds Okay. So first of all uh you know I won't be able to share the commercial terms uh because uh that is that those 4:57 4 minutes, 57 seconds are sensitive information which I cannot disclose in the public and uh so far as the borrow contours of the uh agreement 5:07 5 minutes, 7 seconds I would request Mr. VidC Mason group general manager uh to speak about it. So I presume a reference to the regification agreement which we signed 5:15 5 minutes, 15 seconds recently. So it's a master leg agreement which is a framework agreement uh wherein if OMGC brings cargo then the 5:23 5 minutes, 23 seconds terms and conditions which include the storage period what would be the legal charges what would be the panel provisions or the take use of a provision. So all those contours are 5:31 5 minutes, 31 seconds covered under that agreement. It is a standard agreement like any other regment which we have signed with the long-term capacity holders. Aim is also 5:39 5 minutes, 39 seconds that we convert this into a long-term capacity agreement with OMGC. So in that direction we have signed this chamber. 5:47 5 minutes, 47 seconds Uh second question is on the UOP you know uh uh charges. Uh is it fair my 5:54 5 minutes, 54 seconds understanding correct that another 48.9 crores were due stand due end of C by 25? 6:05 6 minutes, 5 seconds Yes. Uh it is 49 crusate uh that has arisen in uh CY25 6:15 6 minutes, 15 seconds and and what is the update on the liquidation of the balance dues any progress? 6:22 6 minutes, 22 seconds See as you know that the CY21 has already been paid up uh for the CY22 due the uh due date uh was 31st December. 6:33 6 minutes, 33 seconds However, the uh bank guarantees um are valid till 31st of March. 6:40 6 minutes, 40 seconds So, so yeah, so the receipts uh can be done before 31st of March. Endeavor is 6:46 6 minutes, 46 seconds being done for that and CY 23 it is the the sunset has not arrived yet as per the settlement agreement. 6:56 6 minutes, 56 seconds Sorry there's no bank guarantee for 23 you said 23 also most of the uh customers we have received the bank guarantees and the uh 7:04 7 minutes, 4 seconds contract okay so by March the 22 liability should be settled in right yes 7:12 7 minutes, 12 seconds yes and and lastly just if you can give that number for service income and any capex 7:20 7 minutes, 20 seconds project that you want to talk about service income has been uh 7:28 7 minutes, 28 seconds uh 700 865 crores in the 7:36 7 minutes, 36 seconds Okay, perfect. Thank you so much and all the best. 7:41 7 minutes, 41 seconds Thank you. The next question comes from the line of Achel Sha from Ambbit Capital. Please go ahead. 7:48 7 minutes, 48 seconds Uh hi sir. Am I audible? 7:50 7 minutes, 50 seconds Yes sir, you are. uh s so latest uh and long-term data shows that uh the rival terminus in the similar vicinity to the 7:58 7 minutes, 58 seconds hedge are not able to ramp up volumes versus uh pls the edge. So sir is it because of uhl the heads having 8:06 8 minutes, 6 seconds long-term contracts due to better network connectivity or is it the pricing power? So if you can give a 8:13 8 minutes, 13 seconds sense of this dynamics and u if any customer wants gas in that uh area uh 8:22 8 minutes, 22 seconds why the incremental volumes come to the versus the rival terminal. Okay is question number one sir. 8:30 8 minutes, 30 seconds Okay. So shall we go by question by question? Okay. 8:35 8 minutes, 35 seconds Yes sir. So see uh you have already answered uh the question that you have raised uh 8:44 8 minutes, 44 seconds here the H terminal enjoys some uh you know critical advantages 8:50 8 minutes, 50 seconds uh in terms of evacuation because any terminal uh simply having the reg capacity 8:58 8 minutes, 58 seconds doesn't uh know cannot function to its fullest capacity and efficiency. So the 9:05 9 minutes, 5 seconds h terminal the present capacity is 17.5 mmpa and we are ramping it up up to 22.5 uh 9:15 9 minutes, 15 seconds mmpa by the end of this financial year but it already has uh an evacuation 9:23 9 minutes, 23 seconds capacity of 35 million metric ton. So this gives an added advantage to the hedge over other competitor terminals. 9:33 9 minutes, 33 seconds number one. Number two, as you have already said the pricing, we are one of the you know lowest cost operator and uh 9:43 9 minutes, 43 seconds our charges are also one of the lowest in the industry. So the third factor is 9:50 9 minutes, 50 seconds the storage factor. You know Zah gives a unique facility to all its customers of 9:57 9 minutes, 57 seconds not only regification at a very low rate but also provides them with huge storage capacity. So we have eight tanks over 10:05 10 minutes, 5 seconds there and none of the terminals in India are having so much of storage capacity which gives flexibility to the opticles in its operations. 10:16 10 minutes, 16 seconds Got it sir sir. So can you give a sense of how much time it would take for this incremental 5 MMT uh ramp up uh utilization? 10:25 10 minutes, 25 seconds So I've already told I have already told VA will be mechanically completing the uh know construction by end of the 10:32 10 minutes, 32 seconds financial year. So 31st March is our target to complete it uh per mechanical completion. So sir uh what I meant by 10:40 10 minutes, 40 seconds that is uh like how much uh like how much time it would take for uh that MMT 10:47 10 minutes, 47 seconds to get utilized like uh uh at let's say 80% or 90% or 100%. 10:54 10 minutes, 54 seconds Okay. So see uh LNG business 11:00 11 minutes uh it's a mix of long-term uh agreement as well as part agreements and uh it is 11:08 11 minutes, 8 seconds neither good for any uh consumer or a country to 100% depend on the long-term 11:15 11 minutes, 15 seconds agreements or uh you know the spot contracts. 11:20 11 minutes, 20 seconds So we have kept uh our uh facilities uh for both spot caros as well as long-term 11:28 11 minutes, 28 seconds cargos. So in this regard we are already talking to many of the customers and uh these are all at advanced stages and we 11:38 11 minutes, 38 seconds have already uh know experience that uh in the last IW we have signed uh you 11:46 11 minutes, 46 seconds know agreements with NGL uh for uh know servicing their cargos 11:53 11 minutes, 53 seconds and buying cargos on their behalf. So slowly and slowly uh we will try to uh 12:00 12 minutes you know match the ramped up capacity uh with our uh you know customer uh lining 12:09 12 minutes, 9 seconds of customers for uh better utilization of the terminal. 12:14 12 minutes, 14 seconds So just one followup here. So is it safe to understand or assume that uh what whatever this PMMT 12:22 12 minutes, 22 seconds uh capacity utilization would come from incremental import in India versus taking markets 12:31 12 minutes, 31 seconds from rival terminals in the similar vicinity is it you are you are you are correct you are correct uh there's an in you know 12:40 12 minutes, 40 seconds increasing gas demand which is uh evident from the performance of for both the terminals at Dahed and Kochi. Uh so 12:50 12 minutes, 50 seconds with favorable gas prices which we are expecting uh in the coming uh years because of uh you know lot of liquid 12:59 12 minutes, 59 seconds section facilities coming up in uh Migly US uh Mozambique. So there will be uh 13:07 13 minutes, 7 seconds affordable uh energy in the market and uh uh it will definitely increase the gas 13:16 13 minutes, 16 seconds consumption uh in the country and we are actually sprucing up our facilities to 13:24 13 minutes, 24 seconds uh cater to the demand of the in cater to the incremental demand. 13:29 13 minutes, 29 seconds Got it sir. Sir my second question is on uh the AIDA or let's say the PBT contribution from these new investments 13:37 13 minutes, 37 seconds in PTKM, Gopalpur and the third JT. So could you give a sense of uh uh what could be a broadline numbers for these 13:46 13 minutes, 46 seconds uh with respect to financials like we all know the investment and the timelines but uh how much contribution 13:53 13 minutes, 53 seconds at aida level or at a gross margin level are we expecting from these new investments? 14:01 14 minutes, 1 second Yeah, see the u uh we have maintained that uh for this prochemical we are yet to finalize the commercial contracts. 14:10 14 minutes, 10 seconds You have seen in the past that we have done a 600 ktpa contract with uh uh 14:17 14 minutes, 17 seconds now these contracts are being made. So these details are sensitive and we are not sharing it in any of the forums that 14:26 14 minutes, 26 seconds that is the reason why it is not being shared but as and when all the commercial contracts will be done in due course of time we will come out with the numbers. 14:36 14 minutes, 36 seconds Got it. 14:36 14 minutes, 36 seconds Mr. Asha Mr. Sha you may rejoin the queune for the follow-up question. 14:42 14 minutes, 42 seconds A reminder to all the participants please restrict yourself to questions. 14:49 14 minutes, 49 seconds The next question comes from the line of Yogesh Patil from Darat Capital. Please go ahead. Thanks for taking my question sir. 14:57 14 minutes, 57 seconds Couple of questions. Uh 49 cr use or pay will become a part of receivable or it will be treated separately. Need small clarification on this. 15:09 15 minutes, 9 seconds See as of 31st December it is not part of 15:18 15 minutes, 18 seconds receivable. It is as you know that the user pay charges are uh charged as a penalty or LD. So and we recognize the revenue. 15:28 15 minutes, 28 seconds So the revenue has been recognized right now and and it has been and the due date has not arrived yet because we have just 15:36 15 minutes, 36 seconds uh issued the invoice etc. communication etc. 15:42 15 minutes, 42 seconds Okay sir uh fair enough. Second question on the capital expenditure uh how much capex we have done in a 9 month and what 15:49 15 minutes, 49 seconds is the plan for FR 26 27 and 28 if you could throw some light on this number. 15:57 15 minutes, 57 seconds See uh we are expecting to have the approximate effects of till by by March around 3,000 plus cr uh in this year. 16:07 16 minutes, 7 seconds See we have targeted a slightly more than that but due to uh pet cam orders in process we will be restricting our capex during the year around 3,000 cr. 16:18 16 minutes, 18 seconds So next year we are targeting to spend around 9,000 cr. uh mainly main outgo 16:24 16 minutes, 24 seconds will be on account of Katkin and then uh followed by Jetty so others are in small small items but total capex outflow will 16:33 16 minutes, 33 seconds be around 9,000 cr in FY28 it would be the same in the range of 9,000 cr 16:40 16 minutes, 40 seconds no uh see in by FY28 the the additional item will be Gopal so we are expecting by that time Gopal construction will 16:48 16 minutes, 48 seconds also start and right now it will be difficult to estimate the correct number because most of the effects will be cash 16:56 16 minutes, 56 seconds also will be over in case of pract and the addition will be go so n as of today I can tell you only about the next 17:05 17 minutes, 5 seconds financial but overall capex should not be more than this in next year last one from my any discussion or 17:13 17 minutes, 13 seconds updates on the 7.5 mmp capacity for the reg negotiations with the optical and 17:20 17 minutes, 20 seconds when can we expect the final conclusion on this matter any timeline if you could provide we are working on various business 17:29 17 minutes, 29 seconds models for it as of now I cannot give you a firm timeline but we are hoping that next 6 to 8 months we'll have a better clarity and probably hopefully we 17:38 17 minutes, 38 seconds would have done some agreements as part of that uh 7.5 mm agreement but there are number of opters any one 17:45 17 minutes, 45 seconds of you have started negotiations and the things are negotiation it is not separate individual negot ations. So we 17:53 17 minutes, 53 seconds are already in discussions with with all of them and they're not multiple there are only three GLE IOC and BPC which is 18:00 18 minutes the existing agreement also. So in line with that we are having some discussions. Uh certain commercial agreements have already been chosen certain agreements are yet to be executed. 18:09 18 minutes, 9 seconds Thanks a lot sir and all the best. 18:12 18 minutes, 12 seconds Thank you. And on the uh just to add on the rupees 49 cr user paid use that is 18:19 18 minutes, 19 seconds the revenue has been recognized the cash is yet to be received that's 18:28 18 minutes, 28 seconds the next question comes from the line of pranitas from Morgan Stanley please go ahead. 18:35 18 minutes, 35 seconds Uh good morning sir thank you for taking my question. Uh I just wanted to understand is there a bit of um 18:43 18 minutes, 43 seconds discussions when you're on the expanded capacity when you're having discussions with the potential uh clientele uh is 18:51 18 minutes, 51 seconds there discussions on uh they are looking for a longerterm contracts or are they looking for uh something more spot in in 18:59 18 minutes, 59 seconds the near term uh or is there any discussions on the reg uh charge what you put in like I wanted to understand 19:07 19 minutes, 7 seconds the impact of competition position there specifically. Uh that's that's that's my first question. 19:13 19 minutes, 13 seconds As you know, Sahage has always been a offering competitive tariff. Our aim and endeavor will always continue to be that and in this regard yes we are having 19:21 19 minutes, 21 seconds discussion both on spot short-term mid-term and long-term basis with the existing capacity holders as well as new capacity holders and in that direction 19:28 19 minutes, 28 seconds only we recently signed agreement with OGC which was currently for spot short-term but eventually we aim to convert it into a long-term capacity 19:35 19 minutes, 35 seconds agreement and reg charges we have standard reg charges but there should be certain incentives if they do additional volumes we are still working on the 19:44 19 minutes, 44 seconds arrangement Right. So thank you and I just wanted to understand um um any updates on the 19:51 19 minutes, 51 seconds Kopalur uh terminal what you're setting up any updated timelines uh on those? 19:57 19 minutes, 57 seconds I'm sorry I missed the earlier part of your uh yeah it's okay no problem. uh Gopalpur. Uh we 20:05 20 minutes, 5 seconds are uh actually in discussion with the ministry of environment for environment clearance and we expect uh they had 20:14 20 minutes, 14 seconds sought certain certain more clarifications which we have already submitted and we expect the results positive results to come out very soon. 20:25 20 minutes, 25 seconds Okay. So thank you. Uh I I just wanted an update on pro uh petrochemical capex as well. I know that you're doing a bulk 20:32 20 minutes, 32 seconds of the capeex next year. Uh is this timelines what we had discussed earlier still stand? 20:40 20 minutes, 40 seconds Sorry. Uh can you please come up with the question? One oh one minute. 20:47 20 minutes, 47 seconds Uh hello sir I'm clearer right now. 20:50 20 minutes, 50 seconds Yes. Uh so in regard to the prochemical uh capeex uh or the PDHP plant 20:58 20 minutes, 58 seconds any update on the commissioning of those projects? 21:03 21 minutes, 3 seconds Uh well the uh plant construction is on track 21:09 21 minutes, 9 seconds and uh we expect uh bulk of the cex uh 21:14 21 minutes, 14 seconds you know during the financial year 26 27 and commissioning sir like what is the target right now? 21:24 21 minutes, 24 seconds Mr. Prrenita Shetty you may rejoin the queue for the follow-up question. Sure thank you. 21:31 21 minutes, 31 seconds The next question comes from the line of Somay from Aventis Park. Please go ahead. 21:38 21 minutes, 38 seconds Yeah, thanks for the opportunity sir. So the first question on uh the annual escalation that we take in the range u so for this year Jan that's been taken if you can confirm on that. 21:52 21 minutes, 52 seconds Yes it has been taken. 21:55 21 minutes, 55 seconds Got it. Sir also on the utilization front uh kochi we have been seeing um now improvement it has moved almost to 22:03 22 minutes, 3 seconds 30% now so if you can just help us with details in terms of increased reasons for the increased offtake and also the uh Kochi Bangor pipeline the status and 22:12 22 minutes, 12 seconds what is your expectation for next year so Kochi terminal you rightly mentioned 22:20 22 minutes, 20 seconds there has been increase in optic primarily as the prices softened so there was incremental optic from the existing customers which primarily 22:27 22 minutes, 27 seconds include MRPL, OML and COI refinery. So primarily on that account this incremental optic was there and uh as 22:36 22 minutes, 36 seconds far as pipeline connectivity is concerned. G has been still maintaining March 2026 but we believe by June 2026 22:44 22 minutes, 44 seconds we should be connected to national gas to Kinat Bangalore Bangalore pipeline. 22:50 22 minutes, 50 seconds So the last question is on this 590 expanded capacity uh based on uh you know whatever uh contracts or 22:58 22 minutes, 58 seconds discussions that we had so far what is the expectation on FI27 in terms of utilization of this capacity we don't give that at this point of time 23:06 23 minutes, 6 seconds as in when the contract is formed up we'll be delay sending notification to SE and the MSE and BFC but at this point 23:14 23 minutes, 14 seconds of time we cannot okay in trading gain and inventory uh a gain or loss in this quarter. 23:22 23 minutes, 22 seconds There has been no trading gain and inventory gain is 274 cr. Thank you. 23:31 23 minutes, 31 seconds Thank you. The next question comes from the line of Mayor Patel from 361. Please go ahead. 23:38 23 minutes, 38 seconds Yeah, thanks. Uh some of the questions got answered was Kochi. You said June is the pipeline connectivity expected. Uh 23:47 23 minutes, 47 seconds thanks for that. Uh second thing is given the large capex uh camp plan for the next year or so is it fair to assume 23:56 23 minutes, 56 seconds that we'll still be able to maintain around 40% dividend payout 24:05 24 minutes, 5 seconds please uh can you please repeat the question I think our dividend payout has been very healthy in the range of 40 to 50% 24:12 24 minutes, 12 seconds of profits so given that you said 9,000 crores capex in pet cam would happen in FI27 seven. 24:18 24 minutes, 18 seconds So in F7 also despite that we'll be able to manage 40% payout dividend. 24:25 24 minutes, 25 seconds We have a healthy cash balance uh carrying in our books. So 24:32 24 minutes, 32 seconds uh we expect to know maintain the similar uh range of dividends. 24:39 24 minutes, 39 seconds Okay. Thank you sir. and uh Gopal Puram is it fair to assume that when we'll start the construction we'll have some 24:46 24 minutes, 46 seconds visibility about the evacuation connectivity of pipeline and also the offtaker at least in principle demand from the offtakers 24:56 24 minutes, 56 seconds okay uh that's what we are working on uh in fact uh the aim is to tie up at least some part of the capacity before we 25:04 25 minutes, 4 seconds start construction and as far as connectivity is concerned so there is already shikulum Mangul pipeline which is around 30 km from the proposed 25:13 25 minutes, 13 seconds location. So for that the connectivity would be done by Petra at this 30 km but rest of it is already in place. 25:21 25 minutes, 21 seconds Okay. Thanks V. Thank you. Thanks for your question gentlemen. That answers. 25:27 25 minutes, 27 seconds Thank you. The next question comes from the line of Hardik Solanki from ICI securities. Please go ahead. 25:35 25 minutes, 35 seconds Thanks for the opportunity sir. Just want to check on what was the pack till date and you mentioned that the next 25:42 25 minutes, 42 seconds year pack audible. Hope now I'm audible. 25:50 25 minutes, 50 seconds Yeah, it's better. It's better. Yeah, please go ahead. 25:58 25 minutes, 58 seconds The line for Mr. Solanki has been disconnected. We will move forward with the next. The next question comes from the line of Adash Sunil and individual investor. Please go ahead. 26:10 26 minutes, 10 seconds Hi, can you hear me? Okay. Yes. Hello. Yes, please go on. Hello. 26:18 26 minutes, 18 seconds Yes, sir. We can hear you. Let's proceed with your question. 26:22 26 minutes, 22 seconds Firstly, congratulations on the great performance. 26:25 26 minutes, 25 seconds My questions are regarding the Economics Times article. 26:29 26 minutes, 29 seconds First question was that uh with the US trade deal, Petronet might buy LG from 26:37 26 minutes, 37 seconds US. So given that we already have long-term existing contracts, do we have bargaining power on the price or will we 26:46 26 minutes, 46 seconds be buying this at a higher price? Second question for the gas energy plants in India. At 26:54 26 minutes, 54 seconds what price does it become feasible for them to use LG as uh from the article 27:00 27 minutes the usage is pretty low less than 25% if I'm not wrong. And third question is 27:07 27 minutes, 7 seconds regarding the the H expansion at India energy week. I was made aware that uh the 5 MMTPA additional storage is 27:16 27 minutes, 16 seconds already in place. So we can expect it to finish by the end of this uh financial year. 27:24 27 minutes, 24 seconds Okay. So uh first of all uh you know thank you thank you for the compliments 27:31 27 minutes, 31 seconds and uh secondly uh I will uh come to the point of buying LNG uh from US. 27:41 27 minutes, 41 seconds Yesterday uh during the uh press meet our uh MD has already clarified that uh 27:50 27 minutes, 50 seconds the such a deal is only possible if uh you know LNG is available at an 27:56 27 minutes, 56 seconds affordable price. Uh number two the second uh what was the second question? 28:03 28 minutes, 3 seconds Can you please repeat? Regarding the gas, domestic gas they have not taking buying a lot of LNG 28:11 28 minutes, 11 seconds because of the price. So at what price point become favorable for them. Okay. 28:16 28 minutes, 16 seconds So I cannot give you an exact number uh over you know over this call but 28:24 28 minutes, 24 seconds definitely uh it has to be uh you know comparative with respect to uh the other 28:31 28 minutes, 31 seconds alternative soil options. Definitely I'm when I'm selling alternative uh energy options I'm not comparing it with coal 28:39 28 minutes, 39 seconds uh but uh yes maybe uh uh if we take the pricing available today of other 28:48 28 minutes, 48 seconds alternate wells something around uh 7 to8 uh per mmq would be I think affordable 28:57 28 minutes, 57 seconds for the power industry to uh get up and running. 29:03 29 minutes, 3 seconds Got it. Sounds good. And then the deage terminal expansion we expecting it by the end of this year of this financial year. 29:11 29 minutes, 11 seconds I have already announced that we will be mechanically completing it by uh end of this financial year. 29:19 29 minutes, 19 seconds Amazing. Amazing. Thank you so much and best of luck. Thank you. 29:26 29 minutes, 26 seconds The next question comes from the line of Nilles K from SDFC securities. Please go ahead. Uh yeah, just one question from my side. 29:34 29 minutes, 34 seconds Uh sir, um third party regification charges for Q3 FI27 how much it was 29:48 29 minutes, 48 seconds sorry sir79. 29:51 29 minutes, 51 seconds Okay. Thanks. Thanks a lot sir. That's all from Thank you. The next follow-up question 29:59 29 minutes, 59 seconds comes from the line of Hardik Solanki from ICICI. Please go ahead. 30:05 30 minutes, 5 seconds Thanks for the opportunity. So, what will the capac uh for the pet cam year spent till date and you know as you 30:14 30 minutes, 14 seconds mentioned that 9,000 crores will be spent in next year. So, you know how the 21,000 crores will be spent in next couple of years? Can you just give a timeline on that? 30:24 30 minutes, 24 seconds Okay. So uh till March 26 which is current year ongoing total pet cam 30:32 30 minutes, 32 seconds outflow will be approximate say 2,300 K and next year budget year which is March 30:38 30 minutes, 38 seconds 26 uh say till March 27 pet we are expecting around 7,500 30:45 30 minutes, 45 seconds so here it becomes total around 10,000 K total cap hard cash upload may not be 30:52 30 minutes, 52 seconds 20,000 K because it includes soft cost including interest construction period etc and balance will be out in next two 30:59 30 minutes, 59 seconds financial years because second payment will continue even after commissioning because second part is stopped so till till March 27 we are expecting around 31:07 31 minutes, 7 seconds 10,000 cr total pet capex when I say 9,000 cr total budget it takes care of jetty and other capex as well so 7,500 31:17 31 minutes, 17 seconds around for pet cam and balance for other activities okay so so even if we assume you know instead of 20,000 cr The capex is 15,000 31:26 31 minutes, 26 seconds cr. So the next 5,000 cr will be in FI28 right see right now exact breakup I am not 31:34 31 minutes, 34 seconds giving anything but it is around say balance will not be 10,000 I told you it includes interesting construction also another 31:42 31 minutes, 42 seconds got it got it sir in terms uh on the hello yeah sir in terms of uh the 31:51 31 minutes, 51 seconds renewal of the uh contract uh just want to know whether the uh tariff escalation clause will be applicable. 32:01 32 minutes, 1 second These are commercial sensitive information. We cannot disclose it over these forms. Okay. Okay. Thank you. 32:08 32 minutes, 8 seconds It is expected it should be there and but we cannot give you any further guidance on this at this point of time. 32:15 32 minutes, 15 seconds Okay. Okay. Yeah. Thanks. 32:19 32 minutes, 19 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. 32:25 32 minutes, 25 seconds The next follow-up question comes from the line of Achel Sha from Ambbit Capital. Please go ahead. 32:32 32 minutes, 32 seconds Can you give a broad sense of this 70 uh 17 MMT at the H? So uh how much of these 32:40 32 minutes, 40 seconds volumes would be price sensitive versus uh non-pric sensitive and also though I understand that either they have us or 32:48 32 minutes, 48 seconds pay or take off pay but uh uh sometimes they don't take the volumes and uh move to alternative fuels. So can you give a broad sense of this dynamic? 33:03 33 minutes, 3 seconds So we have already as you know we already have two major agreements one is for 7.5 million tons and another for 33:11 33 minutes, 11 seconds 8.25 plus recently we signed.5 million tons. So 16.25 million t is already committed on long-term basis or midterm 33:18 33 minutes, 18 seconds basis on firm use of pay or takeoff pay basis. So in addition to this we do on spot short-term basis capacity booking 33:25 33 minutes, 25 seconds which is on top of the 16.25 25 out of the 17.5 existing capacity. 33:31 33 minutes, 31 seconds So sir these long-term contracts are uh if I'm not wrong till 2028 is it? 33:37 33 minutes, 37 seconds No. So the as you know the last SBA which is with Katar is till 2028 which has now been renewed for another 20 33:43 33 minutes, 43 seconds years. So it runs to 2048. The capacity agreement most of these capacity agreements are till 2036. 33:52 33 minutes, 52 seconds Got it. Okay. Thanks. 33:57 33 minutes, 57 seconds Thank you. A reminder to all the participants that you may press star and one to ask a question. 34:17 34 minutes, 17 seconds The next follow-up question comes from the line of s from Aendas Park. Please go ahead. 34:23 34 minutes, 23 seconds Hi just a clarification on the bitkin capeex that you have said. So just want to know the total project capex if you 34:30 34 minutes, 30 seconds just repeat and also that uh 7,500 crores that break up that you said if you could just repeat 34:37 34 minutes, 37 seconds the uh total capex approved by the board for backend project is 20,685 cr. 34:45 34 minutes, 45 seconds Okay. Now this takes care of escalation depreciation rupee depreciation and interesting construction etc. 34:53 34 minutes, 53 seconds And what uh what we are expecting we have placed almost all the orders for all the long date items. So we will be 35:01 35 minutes, 1 second spending money wherever deliveries are being received or advanced against capital orders in next one year current say from starting from April. So, so 35:11 35 minutes, 11 seconds while we are expecting that we will be making cash outflow around 7,500 crores in the next financial year on account of 35:18 35 minutes, 18 seconds pet sir by end of FI27 we would have spent 35:26 35 minutes, 26 seconds 10,000 crores out of this appro so the remaining has to be in FI 2829 that's what you are just refering 35:34 35 minutes, 34 seconds the remaining will be FI 27 28 and 2829 because after even after commission certain payments remain pending which 35:42 35 minutes, 42 seconds are kept on hold for certain uh test etc. So the balance payment will be lower in next two financial years. 35:51 35 minutes, 51 seconds So thanks for clarification sir also on other projects specifically copal if you could just help us the expected capex 35:58 35 minutes, 58 seconds there and uh the cash outflow will begin from fi 28 onwards. 36:05 36 minutes, 5 seconds See as already told by our director finance that go construction will start immediately after certain clearances are pending. 36:17 36 minutes, 17 seconds So the cash influence immediately immediately thereafter. 36:23 36 minutes, 23 seconds So within this 9,000 crores of capex that uh for SI 27 7,500 is what came and 36:30 36 minutes, 30 seconds uh what what is the expectation for go and s2 36:38 36 minutes, 38 seconds balance 8 approximate 800 cring budgeted for Jackie third Jackie which is under construction. This will also be completing during this year. 36:50 36 minutes, 50 seconds Can you hear? Hello. 36:52 36 minutes, 52 seconds Understood. Understood. So listen 800 for the the balance portion of the JT and then for Gopalur in SI 27. So was 37:00 37 minutes just looking at the total KEX for Gopalur and the majority of that will start will be SI 28. Is that the right understanding? 37:06 37 minutes, 6 seconds The major capex on Gopalur will be F 28. Okay. Okay. 37:12 37 minutes, 12 seconds And the total project if you could just exactly you can rectify it is around 600 not 800 budgeted for 267. 37:27 37 minutes, 27 seconds Okay the total capex for see goal total capex scheme was around 6,000. 37:37 37 minutes, 37 seconds Okay. Got it. Thank you. 37:41 37 minutes, 41 seconds Thank you. The next question comes from the line of Indrakumar Gupta from PL Capital. Please go ahead. 37:49 37 minutes, 49 seconds Am I audible? Yes. Yes sir, you are. 37:54 37 minutes, 54 seconds Yeah. Uh just uh one clarification I did that part. So KEX in F26 will be 3,000 38:00 38 minutes crores yes. Okay. And uh the question can please uh provide some guidance in terms 38:09 38 minutes, 9 seconds of volumes in FI27 and FI 28 if possible. 38:17 38 minutes, 17 seconds We don't know and as of now you know the firm contracts which we have already given in the previous uh session. So as of now our guidance is based on the 38:26 38 minutes, 26 seconds capacity books. However, we are making endeavors to book additional capacity and as prices often we are very hopeful that that volume should increase. 38:36 38 minutes, 36 seconds Okay. Okay. Thank you. 38:41 38 minutes, 41 seconds The next follow-up question comes from the line of Achel Sha from Ambit Capital. Please go ahead. 38:46 38 minutes, 46 seconds Sir, thanks for taking the followup. So sir, in case this uh pipeline uh at Koji terminal near Koji terminal gets 38:53 38 minutes, 53 seconds resolved uh and the connectivity opens up uh where do you see the incremental uh demand coming from? Is it the CGDs in 39:03 39 minutes, 3 seconds near Bangalore or is it the industrial sector uh near uh uh that area? So uh 39:11 39 minutes, 11 seconds can you give a broad sense of uh how much of tech uh increasing at terminal 39:19 39 minutes, 19 seconds because of this uh uh bottleneck getting resolved? 39:24 39 minutes, 24 seconds Yeah, Mr. Ghana, please reply. Thank you. Uh your question is quite valid but let me give a perspective to it. Once it 39:34 39 minutes, 34 seconds is connected with the national gas rate number one part of the question you yourself has answered 39:40 39 minutes, 40 seconds uh on it is the CGD demand as you know uh it is going to be minimum minimum four to fivefold in the next four to 39:49 39 minutes, 49 seconds five years and apart from that you may be aware of for CDB's 39:56 39 minutes, 56 seconds uh major slight deal of PNG and domestic PNG demand irrespective of where they are the June one of 54 rupees will be applicable. 40:07 40 minutes, 7 seconds So it doesn't matter which CGD in which part of the country is the demand needs to be mapped and koshi 40:16 40 minutes, 16 seconds uh terminal one connected so it will be catering to the demand of whole country number one number two as you all of us 40:25 40 minutes, 25 seconds are aware of um it is expected LNG prices are 40:33 40 minutes, 33 seconds uh going to soften in the next 5 to seven Owing to the capacity buildup from 40:40 40 minutes, 40 seconds supplier side and as we know uh other geographical regions across the world 40:47 40 minutes, 47 seconds are either saturated or maybe not having that uh economic growth which whole 40:55 40 minutes, 55 seconds world is uh talking about around 6 to 8% growth consistent growth of India 41:03 41 minutes, 3 seconds leading to energy consumption Actually more than 40% incremental energy consumption is expected to come from uh 41:12 41 minutes, 12 seconds India because of all these reasons as we know it is energy whichever means cost 41:21 41 minutes, 21 seconds effective and ready to propel and fuel the growth sustainable growth and such 41:29 41 minutes, 29 seconds kind of lethal combination perhaps India is at the cusp of the opportunity available 41:38 41 minutes, 38 seconds in the world like universe is uh favoring India at 41:48 41 minutes, 48 seconds this opportune time and gas demand is expected to more than double in next 5 41:55 41 minutes, 55 seconds to 7 years. Uh so of course CDD will be the major demand 42:01 42 minutes, 1 second center but given the softening of LT prices India itself is 42:09 42 minutes, 9 seconds having readym made demand of 25 million t from power apart from multiple 42:16 42 minutes, 16 seconds refineries and petrochemical plants are under extension and India's capacity 42:23 42 minutes, 23 seconds buildup of petrochemical itself is likely to double and as you know they have the dual facility of either burning 42:31 42 minutes, 31 seconds their NAFTA or gas. considering uh gas prices softening. We are 42:38 42 minutes, 38 seconds expecting refineries, petrochemicals, power apart from GD every sector will 42:45 42 minutes, 45 seconds contribute hugely and weight India is coming big way and its growth engine 42:54 42 minutes, 54 seconds will be fed by gas LNG and battle net will be one of the beneficiary having the infrastructure already readily 43:03 43 minutes, 3 seconds available and enhancing its infrastructure at the as well as we are coming at 43:10 43 minutes, 10 seconds Gopalo. I hope I could answer not only to the point question the larger contact. 43:17 43 minutes, 17 seconds So India is where will be the major contributor. 43:24 43 minutes, 24 seconds There's just one followup here is that uh can you give some specific uh guidance with respect to let's say kochi 43:31 43 minutes, 31 seconds getting connect uh uh terminal getting connected with the grid and then uh incrementally how much uh will come from 43:38 43 minutes, 38 seconds CGD assuming it is in zone one and uh versus let's say LNG where there is still that doubt that if spot LNG price 43:48 43 minutes, 48 seconds is moderate then uh uh utilizations improve. So uh if some 43:55 43 minutes, 55 seconds specific guidance with respect to uh koji terminal utilization getting improved that would be really helpful. 44:04 44 minutes, 4 seconds Even the existing capacity of 5 million t will fall short as I told you CGD demand is going to multiple fold. So I particularly answer this question. 44:16 44 minutes, 16 seconds Four-fold CD demand intriguing. 44:20 44 minutes, 20 seconds It is the Koti terminal even I think I'm I'm not allowed to say given the opportunity 44:29 44 minutes, 29 seconds we should be in a position to even further expand this terminal of course I'm not giving any speculation 44:36 44 minutes, 36 seconds but India's capacity is going to grow okay sir thanks thanks a lot for the uh 44:44 44 minutes, 44 seconds full clarity thank Thank you. 44:52 44 minutes, 52 seconds Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to management for closing remarks. 45:00 45 minutes Okay. Thank you. Thank you for your continued interest and engagement. We sincerely appreciate the trust and confidence reports in the company by the 45:10 45 minutes, 10 seconds shareholders, analysts and all other stakeholders. 45:15 45 minutes, 15 seconds I would I also like to say that we remain committed to operational efficiency, discipline, financial management and long-term value creation 45:22 45 minutes, 22 seconds for the investing community and thank you once again for joining us today. 45:26 45 minutes, 26 seconds Look forward to connecting with you in future. 45:30 45 minutes, 30 seconds On behalf of Philip Capital India Private Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. 45:38 45 minutes, 38 seconds Thank you. Thank you. Securements.