Petronet LNG Limited (NSE: PETRONET) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Unidentified Speaker
Shri Vinod Kumar Mishra — Director (Finance)
Vikram Mishra — Chief Financial Officer
Gyanendra Kumar Sharma — Group General Management and President Marketing
Analysts:
Puneet — Analyst
Achal Shah — Analyst
Yogesh Patil — Analyst
Pranita Shetty — Analyst
Somay — Analyst
mayur patel — Analyst
Hardik Solanki — Analyst
Nilesh Koch — Analyst
Indra Kumar Gupta — Analyst
Presentation:
operator
Ladies and gentlemen, the call for Petronet LNG limited will start shortly. Sam foreign. Ladies and gentlemen, good day and welcome to Petronet LNG Limited Q3FY26 earnings call. As a reminder, all participants lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nathan Tiwari. Thank you. And over to you.
Unidentified Speaker
Thanks. Good day. Ladies and gentlemen, on behalf of Philip Capital India Ltd. I welcome everyone to today’s earning call from the management team of Petronatal ng. We have the pleasure of having with us today Sri Sauravikra, Director of Finance and CFO Sri Rakesh Tawla, Executive Director Finance and Accounts Sharma GGM in Tasilian Marketing GGM and President Marketing General Manager FNA Sri Vikas Meshwari, Deputy General Manager fna. I 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.
Shri Vinod Kumar Mishra — Director (Finance)
Good morning. I’m sorry Mitra. Thank you for joining us for the earnings call for the quarter ended 31st December 2025. I’m pleased to share that the company has delivered a strong operational and financial performance during the current quarter supported by improved capacity utilization and operational efficiencies. During the quarter, the overall LNG volume process by the company stood at 233dbgu reflecting a growth of 2% over both the previous quarter and the corresponding quarter. Where volumes stood at 228 TB2 each. At the Zahid terminal, volume throughput during the current quarter was 214TBTU compared to 211TBTU in the previous quarter and 213TBTU in the corresponding quarter. Capacity utilization at zahed improved to 94% up from 92% in the previous quarter and 93% in the corresponding quarter. At Kochi Terminal, PLL achieved the highest ever capacity utilization of 29% during the current quarter. On the financial front, the company reported Pvt. Of Rupees 11.44crore for the quarter registering a 5% growth of a PVT over the previous quarter which stood at rupees 1083 crores. The PBT of the corresponding quarter stood at 1169 crore.
Profit after tax for the quarter stood at 848 crore reflecting a 5% growth over PAT of rupees 806 crore in the previous quarter. The pat in the Corresponding Quarter was Rupees 867 crore. For the nine months ended 31st December 2025 Dahedz processed 632 TBQ as compared to 686 TBQ during the corresponding nine months. The overall LNG volume processed by the company during the current nine months stood at 682 TBQ as against 729 TB2 in the corresponding period. During the current nine months the company reported a PBT of Rs. 3363 crore compared to Rupees 3829 crore in the corresponding nine months.
Profit After Tax for the current nine months stood at Rupees 2505 crore as against Rupees 28. 56 crore in the corresponding period. With this we open the house for the Q and A session. Thank you.
Questions and Answers:
operator
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 touch tone 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. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Puneet from hsbc. Please go ahead.
Puneet
Yeah, thank you so much for the opportunity. My first question is if you can talk a bit about your, you know, contract that you signed with ongc for ethane etc. What are the broad terms of those?
Shri Vinod Kumar Mishra
Okay, so first of all I won’t be able to share the commercial terms because that is that those are sensitive information which I cannot disclose in the public. And so far as the broader contours of the agreement I would request Mr. Vivek Nissan Group General Manager to speak about it. So I presume in a referring to the regasification agreement which we signed recently. So it’s a master Regas agreement which is a framework agreement wherein if ONGC brings cargo then the terms and conditions which include the storage period, what would be the regas charges, what would be the panel provisions or the use of a provision. So all those are covered under this agreement. It is a standard agreement like any other Regas agreement which we have signed with the long term capacity holders. AIM is also that we convert this into a long term capacity agreement with ongc.
So in that direction we have signed this claimwork agreement.
Puneet
Second question is on the UOP charges. Is it fair by understanding correct that another 48.9 crores were due still stand due end of CEBA 25.
Vikram Mishra
Yes, it is 49 crore as you said, that has arisen in CY25.
Puneet
And what is the update on the liquidation of the balance views? Any progress?
Vikram Mishra
See, as you know that the CY21 has already been paid up for the CY22 due. The due date was 31st December. However the bank guarantees are valid till 31st of March. So. So yeah, so the receipts can be done before 31st of March. Endeavor is being done for that. And CY23 it is the. The sunset has not arrived yet as per the settlement agreement.
Puneet
Sorry, there’s no bank guarantee for 23. You said 23.
Vikram Mishra
Also most of the customers we have received the bank guarantees and the contract.
Puneet
Okay, so by March the 22 liability should be settled, right?
Shri Vinod Kumar Mishra
Yes.
Puneet
And and lastly, just if you can give that number for service income and any capex project that you want to talk about.
Shri Vinod Kumar Mishra
Service income has been. 700865 crores.
Puneet
Okay, thank you so much and all the best.
operator
Thank you. The next question comes from the line of Achal Shah from Ambit Capital. Please go ahead.
Achal Shah
Hi sir. Am I audible?
Shri Vinod Kumar Mishra
Yes sir, you are.
Achal Shah
So, latest and long term data shows that the rival terminals in the similar vicinity to the edge are not able to ramp up volumes versus PLL’s the Edge. So sir, is it because of ell the heads having long term contracts due to better network connectivity or is it the pricing power? So if you can give a sense of this dynamics and if any customer wants gas in that area, why the incremental volumes come to the hedge versus the rival terminals? This question number one. Okay, so shall we go by.
Vikram Mishra
Okay.
Achal Shah
Yes sir. So you have already answered the question that you have raised here. The head terminal enjoys some critical advantages in terms of evacuation because any terminal simply having the regas capacity doesn’t cannot function to its fullest capacity efficiency. So dahed terminal, the present capacity is 17.5 mmpa and we are ramping it up up to 22.5 mm ppa by the end of this financial year. But it already has evacuation capacity of 35 million metric tonnes. So this gives an added advantage to the hedge over other competitor terminals. Number one. Number two, as you have already said the pricing we are one of the lowest cost operator and our charges are also one of the lowest in the industry.
So the third factor is the storage factor. DAIS gives a unique facility to all its customers of not only regasification at a very low rate but also provides them with huge storage capacity. So we have eight tanks over there and none of the terminals in India are having so much of storage capacity which gives flexibility to the off takers in its operations. So can you give a sense of how much time it would take to for this incremental 5mmt ramp up utilize?
Shri Vinod Kumar Mishra
I already told VA will be mechanically completing the construction by end of the financial year. 31 March is our target to complete mechanical completion.
Achal Shah
So sir, what I meant by that is like how much like how much time it would take for that 5 MMT to get utilized like at let’s say 80% or 90% or 100%.
Shri Vinod Kumar Mishra
Okay so see LNG business, it’s a mix of long term agreement as well as port agreements. And it is neither good for any consumer or a country to 100% depend on the long term agreements or the spot contracts. So we have kept our facilities for both spot cargos as well as long term cargoes. So in this regard we are already talking to many of the customers and these are all at advanced stages and we have already experience that in the last IEW we have signed agreements with NGL for servicing their cargoes and buying cargoes on their behalf.
So slowly and slowly we will try. To. Match the ramp up capacity with our, you know, customer lining up customers for better utilization of the terminal.
Achal Shah
So just one follow up here. So is it safe to understand or assume that what whatever this PI MMT capacity utilization would come from incremental import in India versus taking markets from rival terminals in the similar vicinity? Is it?
Shri Vinod Kumar Mishra
You are correct. There is an increasing gas demand which is evident from the performance of our both the terminals at Dahij and Kochi. So with favorable gas prices which we are expecting in the coming years because of a lot of liquidation facilities coming up in Middle east, us, Mozambique. So there will be affordable LNG in the market and it will definitely increase the gas consumption in the country. And we are actually sprucing up our facilities to cater to the demand of the cater to the incremental demand.
Achal Shah
Got it. Sir, my second question is on the EBITDA or let’s say the PBT contribution from these new investments in Petkim, Gopalpur and the third jt. So could you give a sense of what could be a broad line numbers for these with respect to financials. Like we all know the investment and the timelines but how much contribution at EBITDA level or at a gross margin level are we expecting from these new investments?
Vikram Mishra
Yeah, see the. We have maintained that for this petrochemical we are yet to finalize the commercial contracts. You have seen in the past that we have done a 600 KTPA contract with ONDC. Now these contracts are being made. So these details are sensitive and we are not sharing it in any of the forums. That 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.
operator
Mr. Shah, you may rejoin the kune for the follow up question. A reminder to all the participants, please restrict yourselves to questions. The next question comes from the line of Yogesh Patil from Dollar Capital. Please go ahead.
Yogesh Patil
Thanks for taking my question sir, Couple of questions. 49 crore user pay will become a part of receivable or it will be treated separately. Need small clarification on this side. See as on 31st December it is not part of receivable. It is as you know that the user pay charges are charged as a penalty or ld. So and we recognize the revenue. So the revenue has been recognized right now and it has been under. The due date has not arrived yet because we have just issued the invoice etc. Communication etc. Okay sir, second question on the capital expenditure how much capex we have done in a nine month and what is the plan for FR 26, 27 and 28? If you could throw some light on these numbers.
Shri Vinod Kumar Mishra
See we are expecting to have the approximate capex of till by March around 3000 plus crore. In this year we have targeted slightly more than that but due to Fed can orders in process we will be restricting our capex during the year around 3000 crores. Next year we are targeting to spend around 9000 crore mainly main outgo will be on account of Katkin and then followed by jetty. So others are very small small items. The total CAPEX outflow will be around 9000 crore. In FY28 it will be the same in the range of 9000 crore.
No see by FY28 the additional item will be Gopalpur. So we are expecting by that time Gopalpur construction will also start. And right now it will be difficult to estimate the correct number because most of the capex will be cash also will be over in case of Petcom and the addition will be Gopal. So as of today I can tell you only about the next financial. But overall capex should not be more than this in many next year. Last one from Michael. Any discussion or updates on the 7.5 MMTP capacity for the REGAS tariff negotiations with Optical.
And when can we expect the final conclusion on this matter? Any timeline if you could provide. We are working on various business models for it. As of now I cannot give you a firm timeline but we are hoping that next six to eight months we will have a better clarity and probably hopefully we would have done some agreements as part of the 7.5 but there are number of offtakers. Any one of you have started negotiations and the things are it is not separate individual negotiations. So we are already in discussions with all of them and they’re not multiple.
They are only three gale, IOC and BPCA which is the existing agreement also. So in line with that we are having some discussions. Certain commercial agreements have already been proven. Certain agreements are yet to be executed. Thanks a lot sir and all the best. Thank you. And only just to add on the rupees 49 crores user pay dues that is the revenue has been recognized, the cash is yet to be received.
operator
The next question comes from the line of Pranita Shetty from Morgan Stanley. Please go ahead.
Pranita Shetty
Good morning sir. Thank you for taking my question. I just wanted to understand is there a bit of discussions when you’re on the expanded capacity, when you’re having discussions with the potential clientele is there discussions on they are looking for a longer term contracts or are they looking for something more spot in. In the near term or is there any discussions on the REGAS charge? What you. I wanted to understand the impact of competition there specifically. That’s my first question.
Vikram Mishra
As we know the Hedge has always been offering competitive tariffs so our aim and endeavor will always continue to be there. And in this regard yes we are having discussion both on spot short term, midterm and long term basis with existing capacity holders as well as new capacity holders and in that direction only. We recently signed agreements with ONGC which was currently for spot short term but eventually we aim to convert it into a long term capacity agreement. And REGAS charges? We have standard REGAS charges but there could be certain incentives if they do additional volumes.
We are still working on that agreement.
Pranita Shetty
Right sir. Thank you. And I just wanted to understand any updates on the Gopalpur terminal what you’re setting up any updated timelines on those? I’m sorry I missed the earlier part of your.
Vikram Mishra
It’s okay, no problem. Gopalpur. We are actually in discussion with the Ministry of Environment for environment clearance and we expect they had sought certain more clarifications which we have already submitted and we expect the positive results to come out very soon.
Pranita Shetty
Okay. So thank you. I just wanted an update on Petrochemical Capex as well. I know that you’re doing a bulk of the capex next year. Is this timelines what we had discussed earlier still stand?
Shri Vinod Kumar Mishra
Sorry, can you please come up with the question once?
Pranita Shetty
Oh, one minute. Hello sir. Am I clearer right now?
Shri Vinod Kumar Mishra
Yes.
Pranita Shetty
So in regard to the Petrochemical Capex or the PDHPP plant. Any update on the commissioning of those projects?
Shri Vinod Kumar Mishra
Well, the plant construction is on track. And we expect bulk of the Capex during the financial year 2627.
Pranita Shetty
And commissioning. Sir, like what is the target right now?
operator
Mr. Pranita Shetty, you may rejoin the queue for the follow up question.
Pranita Shetty
Sure. Thank you.
operator
The next question comes from the line of Somay from evndispark. Please go ahead.
Somay
Thanks for the opportunity sir. So first question on the annual escalation that we take in the age. So for this year Jan, that’s being taken?
Shri Vinod Kumar Mishra
Yes, it has been taken.
Somay
Got it sir. Also on the utilization front Kochi we have been seeing improvement. It has moved almost to 30% now. So if you can just help us with details. In terms of increased reasons for the increased offtake and also the Kochi Bangalore pipeline. The status and what is your expectation for next year?
Vikram Mishra
So Kochi Terminal you rightly mentioned there has been increasing offtake primarily as the prices. Often there was incremental offtake from the existing customers which primarily include mrpl, OMPL and Kochi Refinery. So primarily on that account this incremental offtake was there. And as far as pipeline connectivity is concerned Gale has been still maintaining March 2026. But we believe by June 2026 we should be connected to natural gas Bangalore Bangalore pipelines.
Somay
Last question is on this 5. Expanded capacity. Based on you know whatever contracts or discussions that we had so far. What is our expectation in FY27 in terms of utilization of this capacity?
Vikram Mishra
We don’t give that at this point of time. As and when the contract is firmed up we’ll of course be declared sending notification to SEBI and the MSC and bsc. But at this point of time we cannot.
Somay
Okay. Trading gain and inventory gain or loss in this quarter there has been no.
Vikram Mishra
Trading gain and Inventory gain is 27 crores.
Somay
Thank you.
operator
Thank you. The next question comes from the line of mayur patel from 361asset. Please go ahead.
mayur patel
Yeah, thanks. Some of the questions got answered was Kochi. You said June. Is the pipeline connectivity expected? Thanks for that. Second thing is given the large Capex Chem planned for next year also Is it fair to assume that we will still be able to maintain around 40% dividend payout?
Shri Vinod Kumar Mishra
Please can you please repeat the question?
mayur patel
I think our dividend payout has been very healthy in the range of 40 to 50% of profits. So given that you said 9,000 crores capex in Petcam would happen in FY27. So in FY20 also despite that we’ll be able to manage 40% payout.
Shri Vinod Kumar Mishra
We have a healthy cash balance carrying in our books. So we expect to maintain the similar range of dividends.
mayur patel
Okay, thank you sir. And Gopal Puram, is it fair to assume that when we’ll start the construction we’ll have some visibility about the evacuation connectivity of pipeline and also the off taker. At least in principle demand from the off takers.
Vikram Mishra
Okay, that’s what we are working on. In fact the aim is to tie up at least some part of the capacity before we start construction. And as far as pipeline connectivity is concerned. So there is already a Shrika Kula Mangal pipeline which is around 30 km from the proposed location. So for that the connectivity would be done by petra at this 30 km. But rest of it is already in place.
mayur patel
Okay, thanks Vivek. Thank you. Thanks for your question gentlemen.
operator
Thank you. The next question comes from the line of Hardik Solanki from ICICI Securities. Please go ahead.
Hardik Solanki
Thanks for the opportunity sir. To check on what was the patent.
Shri Vinod Kumar Mishra
Capex till date and you mentioned that.
Hardik Solanki
The next year Pet contact.
Shri Vinod Kumar Mishra
Now I’m audible.
operator
Yeah, it’s better. It better.
Vikram Mishra
Yeah.
operator
Please go ahead. The line for Mr. Solanki has been disconnected. We will move forward with the next. The next question comes from the line of Adarsh Sunil, an individual investor. Please go ahead.
Hardik Solanki
Hi, can you hear me okay? Yes, hello.
operator
Yes, please go on.
Hardik Solanki
Hello.
Shri Vinod Kumar Mishra
Yes sir, we can hear you. Please proceed with your questions.
Hardik Solanki
Firstly, congratulations on the great performance. My questions are regarding the Economics Times article. First question was that with the US trade deal Petronet might buy LNG from us. So given that we already have long term existing contracts do we have bargaining power on the price or will we be buying this at a higher price? Second question, for the gas energy plants in India, at what price does it become feasible for them to use lng? As from the article, the usage is pretty low. Less than 25% if I’m not wrong. And third question is regarding the hedge expansion at India Energy Week.
I was made aware that the 5mm TPA additional storage is already in place. So we can expect it to finish by the end of this financial year.
Vikram Mishra
Okay. So first of all you know, thank you. Thank you for the compliments. And secondly, I will come to the point of buying LNG from us. Yesterday during the press meet our MD has already clarified that such a deal is only possible if LNG is available at an affordable price. Number two, the second. What was the second question? Can you please repeat?
Hardik Solanki
Regarding the domestic gas, they have not been taking buying a lot of LNG because of the price. So at what price?
Vikram Mishra
So I cannot give an exact number over this call. But definitely it has to be operative with respect to the other alternative fuel options. Definitely. When I’m selling alternative energy options I’m not comparing it with coal. But yes, maybe if we take the pricing available today of other alternate fuels something around 7 to $8 per mmbq would be I think affordable for the power industry to get up and running.
Hardik Solanki
Got it. Sounds good. And then the hedge terminal expansion, we are expecting it by the end of this year.
Shri Vinod Kumar Mishra
Yes, I have already announced that we will be mechanically completing it by end of this financial year.
Hardik Solanki
Amazing. Amazing. Thank you so much and best of luck.
operator
Thank you. The next question comes from the line of Nilesh Koch from SDFC Securities. Please go ahead.
Nilesh Koch
Yeah, just one question from my side sir. Third party regasification charges for Q3FY27. How much it was? Sorry sir. Okay, thanks. Thanks a lot sir. That’s all from us.
operator
Thank you. The next follow up question comes from the line of Hardik Solanki from icici. Please go ahead.
Hardik Solanki
And for the opportunity. So what is the for the PET spend till date and you know as you mentioned that 9,000 crore 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?
Vikram Mishra
Okay, so till March 26 which is currently ongoing total PET chem outflow will be approximate say 2300 crore. And next year budget year which is March 26 until March 27 pet can we are expecting around 7500. So here it becomes total around 10,000 crore total cash upflow may not be 20,000 crore because it includes soft cost including interest during the restructuring period etc. And balance will be output next two financial years because certain payment will continue even after commissioning because certain part is start. So till March 27 we are expecting around 10,000 crore total. When I say 9,000 crore total budget it takes care of JP and other the previous capex as well.
So 7,500 around for petcam and balance for other activities.
Hardik Solanki
Okay. So even if you assume, you know instead of 20,000 crore if the capex is 15,000 crore so the next 5,000 crore would be in by 28. Right?
Vikram Mishra
See right now break exact breakup. I am not giving anything but it is around say balance will not be 10,000. I told you it includes interest during construction also.
Hardik Solanki
Got it? Got it. Hello. Yeah sir, in terms of the renewal of the contract, just want to know whether the tariff escalation clause will be applicable.
Vikram Mishra
These are commercial sensitive information. We cannot disclose it over these forms.
Hardik Solanki
Okay. Okay, thank you.
Vikram Mishra
It is expected, it should be there and. But we cannot give you any further items on this at this point of time.
Hardik Solanki
Okay. Okay. Yeah, thanks.
operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next follow up question comes from the line of Achal Shah from Ambit Capital. Please go ahead.
Achal Shah
Can you give a broad sense of this 17 mmt at the hedge. So how much of this volumes would be price sensitive versus non price sensitive. And also do I understand that either they have user pay or takeoff pay but sometimes they don’t take the volumes and move to alternative fuels. So can you give a broad sense of this dynamic?
Vikram Mishra
We have already, as you know we already have two major agreements. One is for 7.5 million tonnes and another for 8.25 plus. Recently we signed 0.5 million tonnes. So 16.25 million ton is already committed on long term basis, on midterm basis, on firm use of a take or pay basis. So in addition to this we do on spot short term basis capacity booking which is on top of the 16.25 out of the 17.5 existing capacity.
Achal Shah
So these long term contracts are if I’m not wrong till 2028 is it?
Vikram Mishra
As you know the last year SPA which is Qatar is still 2028 which has now been renewed for another 20 years. So it returns to 2048. The capacity agreement. Most of these capacity agreements are till 2036.
Achal Shah
Got it. Okay, thanks.
operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next follow up question comes from the line of Somay from Evandes Park. Please go ahead.
Somay
Hi sir, just a clarification of the bitkin capex that you said. So just want to know the total project capex include just repeat and also that 7,500 crores that breakup that you said. If you would just repeat.
Vikram Mishra
The total capex approved by the board for PACS and project is 20,685 crore rupees. Okay. Now this takes care of escalation, depreciation, rupee depreciation and interest within construction etc. And what we are expecting, we have placed almost all the orders for all the long lead items. So we will be spending money wherever deliveries are being received or advanced against capital orders in next one year current say from starting from October. So we are expecting that we will be making cash outlook around 7,500 crores in the next financial year. On account of pet cannon.
Somay
By end of FY27 we would have spent 10,000 crores. Out of this 20,000 approximate. So the remaining has to be in FY28 29. That’s what you are.
Vikram Mishra
The remaining will be F by 2728 and 2829. Because after. Even after commissioning certain payments remain pending which are kept on hold for certain tests etc. So the balance remains will over in next two financial years.
Somay
Thanks for the clarification, sir. Also on other projects specifically Copal, if you could just help us. The expected capex there and the cash outflow will begin from FY28 onwards.
Vikram Mishra
See as already told by our director Finance that Gopalpur construction will start immediately after certain clearances are pending. So the cash influence immediately thereafter.
Somay
So within this 9000 crores of capex that for FY27 7500 is for pet King. And what. What is the expectation for Gopal.
Vikram Mishra
Balance is approximate 800 corroding vaulted for jetty third jetty which is under construction. This will also be completing during this year. Can you hear? Hello.
Somay
Understood. Understood. So you’re saying 800 for the the balance portion of the jetty and then for Bhopalpur in SI27. So just looking at the total capex for Bhopalpur and the majority of it will start in. Maybe FY28 is the right understanding.
Vikram Mishra
The major capex on Gopalpur will be in FY28.
Somay
And the total project capex. If you could just.
Vikram Mishra
Exactly you can rectify it is around 600 crore not 800 budgeted for 2697.
Somay
The total capex.
Vikram Mishra
See Gopal total capex scheme was around 6,000 cr.
Somay
Okay, got it. Thank you.
operator
Thank you. The next question comes from the line of Indra Kumar Gupta from PL Capital. Please go ahead.
Indra Kumar Gupta
Am I audible?
operator
Yes sir, you are.
Vikram Mishra
Yeah.
Indra Kumar Gupta
Just one clarification. I missed that part. So capex in FY26 rent will be 3000 crores approximately. And the question can please provide some guidance in terms of volumes in FY27 and 28 if possible.
Vikram Mishra
And as of now you know the firm contracts which we have already given in the previous question. So as of now our guidance is based on the capacity book. However, we are making endeavors to book additional capacity and as prices soften, we are very hopeful that that volume should increase.
operator
Thank you. The next follow up question comes from the line of Achal Shah from Ambit Capital. Please go ahead sir.
Achal Shah
Thanks for taking the follow up. So sir, in case this pipeline at Kochi Terminal near Kochi Terminal gets resolved and the connectivity opens up, where do you see the incremental demand coming from? Is it the CGDS in near Bangalore or is it the industrial sector near that area? So can you give a broad sense of how much offtake increasing at Kochi Terminal because of this bottleneck getting resolved?
Shri Vinod Kumar Mishra
Yeah. Mr. G.K. sharma, please reply.
Gyanendra Kumar Sharma
Thank you. Your question is quite valid but let. Me give a perspective to it. Once it is connected with the national gas Grid number one part of the question you yourself has answered 1. It is the CBD demand. As you know it is going to be minimum, minimum four to five fold in the next four to five years. And apart from that you may be aware of for CBD’s major flywheel of PNG and domestic PNG demand, irrespective of where they are, the zone 1 tariff of 54 rupees will be applicable. So it doesn’t matter which CGD in which part of the country is the demand needs to be Met and Kochi Terminal 1 connected.
So it will be catering to the demand of whole country number one. Number two, as you and all of us are aware of, it is expected LNG prices are going to soften in the next five to seven years owing to the capacity build up from supplier side. And as we know other geographical regions across the world are either saturated or maybe not having that economic growth. Which whole world is Talking about around 6 to 8% growth, consistent growth of India leading to energy consumption. Virtually more than 40% incremental energy consumption is expected to come from India because of all these reasons as we know it is energy, whichever means is cost effective and ready to propel and fuel the growth.
Sustainable growth and such kind of lethal combination. Perhaps India is at the cusp of the opportunity available in the world. Of space. Universe is favoring India at this opportune time. And gas demand is expected to more than double in next five to seven years. So of course CGD will be the major demand center. But given the softening of L and T Prices. India itself is having ready made demand of 25 million tonnes of strong power. Apart from multiple refineries and petrochemical plants are under extension and India’s capacity buildup of petrochemical itself is likely to double.
And as you know they have the dual facility of either burning their naphtha or gas. Considering gas prices softening, we are expecting refineries, petrochemical power apart from CED every sector will contribute hugely and with India is coming big way and its growth engine will be fed by cac LNG and Petronet will be one of the beneficiaries having the infrastructure already readily available and enhancing its infrastructure at the hate as well as we are coming at Gopalpur. I hope I could answer not only to the point question, the larger contact. So India is good. Will be the major contributor.
Achal Shah
Just one follow up here is that can you give some specific guidance with respect to let’s say Kochi getting connect, terminal getting connected with the grid and then incrementally how much will come from CGD assuming it is in zone one and versus let’s say LNG where there is still that doubt that if spot LNG prices moderate then utilizations improve. So if some specific guidance with respect to Kochi terminal utilization getting improved that would be really helpful.
Gyanendra Kumar Sharma
Even the existing capacity of 5 million ton will pulse out. As I told you, CZD demand is going to be multiple fold. So I particularly answered this question four fold. CZD demand increasing it is the terminal even I think I’m not allowed to say. Given the opportunity we should be in a position to even further expand this terminal. Of course I’m not giving any speculation but India’s capacity is going to grow.
Achal Shah
Okay sir, thanks. Thanks a lot for the full clarity.
operator
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to management for closing remarks.
Shri Vinod Kumar Mishra
Okay, thank you. Thank you for your continued interest and engagement. We sincerely appreciate the trust and confidence reposed in the company by the shareholders, analysts and all other stakeholders. I would also like to say that we remain committed to operational efficiency, disciplined financial management and long term value creation for the investing community. And thank you once again for joining us today. Look forward to connecting with you in. Future.
Unidentified Speaker
On behalf of Philip Capital India Private Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines.
Shri Vinod Kumar Mishra
Thank you.
Gyanendra Kumar Sharma
Thank you very much.