Petronet LNG Limited (NSE: PETRONET) Q4 2025 Earnings Call dated May. 20, 2025
Corporate Participants:
Unidentified Speaker
Saurav Mitra — Chief Financial Officer
Vivek Mittal — Chief General Manager
Rakesh Chawla — Group General Manager & President
Analysts:
Unidentified Participant
S. Ramesh — Analyst
Probal Sen — Analyst
Yogesh Patil — Analyst
Pratyush Kamal — Analyst
Kirtan Mehta — Analyst
Hardik Solanki — Analyst
Nitin Tiwari — Analyst
Akash Mehta — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Petronet LNG Limited Q4FY25 earnings conference call hosted by Nirmal Bank Equities Pvt. Ltd. As a reminder, all participant lines will be in the lesson 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 S. Ramesh from Nirmalban Equities Pvt. Ltd. Thank you. And over to you sir.
S. Ramesh — Analyst
Good morning ladies and gentlemen. On behalf of Nanmal Bank Institutional Equities I pleasure in inviting you all for this fourth quarter FY25 earnings conference call with the management of the Toronto LNG Limited. The management is represented by Mr. Saurav Mitra, Director Finance and CFO. Mr. Rakesh Shawla, Chief General Manager and President Finance and Accounts. Mr. Vivek Mitra, Chief General Manager and Vice President Marketing. Mr. Deva Brother Satpati, General Manager Finance and Accounts. Mr. Vikas Maheshwari, Deputy General Manager Finance and Accounts. Let me also welcome Mr. Sauram Mitra for his first earnings call after taking over as Director of Finance.
Over to you Mr. Mitra for your opening remarks and then we can throw the floor open for Q and A. Yeah.
Saurav Mitra — Chief Financial Officer
Good morning to you all and thank you for the warm welcome. Well, financial year 202425 has been an excellent year for us both in terms of operational and financial performance. Delving on the highlights, ELL achieved the highest ever overall volume throughput of 934TBTU. And for the first time ever the profit before tax crossed 5,000 crore. The company recorded highest ever profit before tax and profit after tax of rupees 5275 crore and rupees 3926 crore respectively. Registering a growth of 11% over the previous financial year. Let me now turn to the fourth quarter of FY2024 25.
We posted our highest ever Q4 profits. PBT stood at 1446 crore compared to 996 crore in Q4 of the previous financial year and 1169 crore in the previous quarter of the current financial year. Profit after tax stood at. Compared to. Rupees 738 crore in Q4 of the previous financial year and 867 crore in the previous quarter of the current financial year. In terms of LNG volumes the hedge terminal processed 189 TBTU compared to 219 TBTU in quarter four of the previous financial year and 213 TBTU in the previous quarter of the current financial year. Overall Q4 volume processed was 205TBTU compared to 234TBTU in Q4 of the previous financial year and 228TBTU in the previous quarter of the current financial year. On a full year basis Dahed processed 876 TBtu up from 865 TBtu during previous financial year.
Total LNG processed by the company reached record heights of 934TB2 up from 919TB2 during the previous financial year. We have received 360.94 crore of user pay dues pertaining to calendar year 2021 thanks to the board approved mechanism in place. These strong financial performance are a result of operational efficiency, cost discipline and higher capacity utilization. Further, the Board of directors has recommended final dividend of rupees three per share to sum up, this year was about delivering consistent growth, staying financially prudent and raising the bar on performance. We are confident about continuing this momentum in the coming year also.
Thank you. So now we can have the Q and A.
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 Sharon 1 on the Touchstone telephone. If you wish to remove yourself from the question queue you may press star and 2. 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 is from the line of Prabhal Sen from ICICI Securities. Please go ahead.
Probal Sen
Thank you for the opportunity, sir. I hope I am audible.
Saurav Mitra
Yes, yeah.
Probal Sen
A couple of questions. First is with respect to the capacity expansions that we have already completed plus whatever is in prospect, any color you can throw on the status of additional contracts in terms of offtake contracts that we have signed or in the process of signing to secure these long term supplies being placed in the market. That was my first question.
Saurav Mitra
Okay, so Mr. Vivek Mittal will answer this.
Vivek Mittal
Good morning everyone. So the hedge, as you know we are expanding from 17.5 to 22.5 million tons and hopefully within next three, four months we expect this to be ready for commissioning and we are in discussion with various parties. And in addition to this some of our existing capacity holders also bring in additional volumes under the long term contracts they have. So utilization. And further, as all of us are aware that almost 200 million tonnes of new liquefaction capacity is getting added in next 3, 4 years time frame. So LNG availability will also increase. So India is well positioned to take advantage of that.
So with that we don’t see any issue with utilization of the terminal capacity. Specifically the Dahish terminal which is very well connected with the natural gas grid.
Probal Sen
Just a follow up on that, sir. With respect to the renewal of the existing long term contract with Qatar. Where are we with that exactly? And forgive me if you’ve already updated on this earlier but where exactly are we in terms of.
Vivek Mittal
On 6th of February 2024 we signed a contract with Qatar wherein the 7.5 million ton has now been renewed for another 20 years from 2028 to 2048. And we have an assurance that the entire volume will be taken by Gale Indian Oil and bpcl. And we expect shortly to sign downstream agreements related to this volume.
Probal Sen
Right. Second question sir. With respect to the petrochemical project, any update you can share in terms of the investment? Done. And where are we with respect to the timelines as of now with the petrochemical project?
Saurav Mitra
Yes, the timeline remains the same which has been announced earlier. We’ll be completing during the end of last quarter of 2020 and will be ready with the production in 1Q20, last quarter of 2728. And we have already started giving the LLI’s long lead items orders. Work is in progress in full steam. And we have scheduled CAPEX program of around 5000 crores. 4500 to 5000 crores in the current financial year wherein the Dahij Petrochemical. For Dahaj Petrochemical project we have targeted around 2,500 crores of capex.
Probal Sen
Right sir, I’ll come back. Thank you so much. I’ll come back if I have no questions. Thank you for your.
operator
Thank you. The next question is from the line of Yogesh Patel from Daulat Capital. Please go ahead.
Yogesh Patil
Thanks for taking my question sir. Considering the PNGRP regulations for the registration of LNG terminals. So sir, Petronet LNG will set up the two LNG tanks at the hedge. This might need a separate registration permissions from the side of the NJRB port. And one more related, these regulations also suggest that avoiding of encrypted investments. This might suggest the capping of the new LNG terminal in addition. So we are also planning to set up the Gopalpur LNG terminal. So do we expect any kind of delay on that side because of this registration regulation?
Saurav Mitra
Okay, so so far as this regulation, this notification which has come up on 8th of May this year. We don’t foresee on the first reading any major challenge and however our team is looking into the matter in detail and we’ll be able to come up with further detailed analysis only once the notification is reviewed in greater details. So as of now I can only say that we don’t on the first reading we don’t foresee any major challenge.
Yogesh Patil
Yeah sir, second question. India’s LNG import has increased 8% on YoY basis while the Dahesh terminal volume has declined 14% compared to the last year. This indicates that we are losing a market share despite the cheapest 3 gas tariffs there. Any particular reason why we are losing a market share and what kind of a strategy you have to arrest it?
Vivek Mittal
So basically firstly if you look at the annualized numbers of the hedge, terminal utilization on annualized basis has increased. So it is not that it is declined because I think it is increased by 1%.
Yogesh Patil
Sir, I am talking about the Q4 FR25 numbers only
Vivek Mittal
And Q4 if you talk so spot prices were definitely on the higher side and if you see that there was decline in crude oil prices which means the liquid fuel prices were on the cheaper side.
So that’s the reason there was some. And secondly there was some fertilizer plants major shutdown during February and March of last quarter. So these two factors attribute why the utilization of the hedges slightly gone down in the Q4.
Yogesh Patil
And last question sir. Dabol breakwater facility is completed and terminal is expected to be all weather terminal. Now considering that average monthly gas volumes which were shifted historically in the monsoon period to the hedge and the HV is expected to be impacted because of some quantity during the monsoon month. So how you will cover up these shortfall in a volume FR26 and any.
Strategy on that side.
Vivek Mittal
Indian gas demand is expected to grow at 6 to 7% annually. So I think there is space for everyone to survive in this market. And the hedge as you know is very well connected with the multiple pipeline networks of GAR GS, some private networks. So we don’t see on the long run any issue with we don’t foresee and in fact with the more availability of LNG as I mentioned previously also we do expect the utilization level to go up and in fact Dahedge is further expanding keeping in view the expected demand which is going to come after the implementation of CGT rounds.
Yogesh Patil
Thanks a lot sir. That’s it from Mike.
operator
Thank you. The next question is from the line of Vartarajan Shivashankaran from Iantech Ltd. Please go ahead.
Unidentified Participant
Thank you for the opportunity. As far as this bank guarantees are concerned and what we have in cash so far for calendar 21 and 22, what has been the amount of we have in cash and what has been the compensatory volume which has come through? So is it largely bank guarantee and cashmere or. We have had volumes also come through as far as calendar 23 and 24 is concerned. Are bank guarantees in place or the process is just about initiated, what is expected?
Saurav Mitra
Okay, so we are happy to announce that none of the bank guarantees have been in cash. All the money that have come in it has been paid by the offtakers. This is number one. And so far as bank guarantees for the subsequent years are concerned, we are in the process of getting the bank guarantees for calendar year 2322, 2023.
Unidentified Participant
And on the second question about what you had assured about the 7.5 million tons offtake being, you know once again initiated with the current off takers you said about to be signed. Anybody incremental details you can share with the would they also be committing to additional volumes or is it as of now restricted to the 7.5?
Vivek Mittal
We are talking of 7.5 million ton spa which was signed with Sasser on 6th of February 2024. So there is an off tech commitment which has been guaranteed by all the three existing offtakers, Gale Indian Oil and Bharat Petroleum. So we are talking about that and we are in discussions with them to finalize the downstream agreements, basically the definitive agreements like gas sale purchase agreements for these volumes.
Unidentified Participant
So there is no discussion currently on for the expanded capacity as well the.
Vivek Mittal
Expanded capacity we are in discussion wherein they bring in their own volumes. In fact if you are tracking the market, all the players, Gale Indian Oil, Bharat Petroleum, all of them have signed long term spas directly. So these volumes are bound to come to some terminals. So we expect substantial volumes to land at the hedge terminal. Already they have existing regas capacity. If required they may augment that capacity commitment.
Unidentified Participant
Sir, thanks a lot. I’ll come back.
operator
Thank you. The next question is from the line of Pratyush Kamal from Encourage Capital. Please go ahead.
Pratyush Kamal
Hello sir, I’m audible.
Saurav Mitra
Yes.
Pratyush Kamal
Yeah, so my question is regarding the user pay charges which are levied and how and when it gets reversed. So I just wanted to explain in the way that suppose I’m a customer who have taken X linton of gas in CY 2122 and when your E gas charges was Y for example it was 55 and not at that time you booked it as receivable amounting to say 100 crore. But later put a provision provision of about 100 cr against the due amount. Now when the customers are taking those volumes back when you regaze charges has increased, suppose it it has become 65 or 60 or something like that.
It will lead to about 150 crore of revenue generation. So will that UOP provisioning of about 100 crore gets reversed first and then the additional provisioning of 50 crore gets added in the revenue or like how does it works usually so this is first part of the question sir. Okay.
Saurav Mitra
Mr. Jawla will reply to your see.
Rakesh Chawla
What what is being done is that whenever any customer is not able to fulfill its commitment lifting of the quantity as per contract he has to pay user pay and accordingly as LD we record that as revenue for that particular year and as per the scheme approved. What we are doing is we are taking provision for that amount every year based on the time bound provisions. Now if somebody is able to bring some material out of it in next financial year. Now higher tariff is charged as applicable for that particular year and that is recorded as my normal revenue.
Whereas whatever leftover amount after making provision that is reversed as waiver. Because that waiver is with reference to LD charges it is not with reference to the revenue. Revenue is recognized in the respective year at the current tariff for the volume which is brought out of that. So revenue will be at higher rate whereas provision will be reversed at the as per the book debts. That is the normal process.
Pratyush Kamal
Understood sir. And other question was regarding the other terminals opening. Particularly if I talk about Chara where HPC is thinking of, you know to catering the captive refinery demand from there itself. So what’s your outlook on the volume growth with respect to that Also SPCL has other players intimated petronet on their disinterest in taking the volumes. So has they have intimated Petronet in terms of this this interest in taking the volumes Also are there any sort of volume compulsions with formal agreement as far as SPCL is concerned for taking the volumes from the Petronet particularly from the hills or the Kochi terminal as.
Vivek Mittal
Petron we do not have any agreements with hpcl. We have agreements with Gale, Indian Oil Petroleum, ESPC Torrent on long term basis for capacity utilization. So those agreements are intact. We don’t foresee any issue with that. And as far as HPCL is concerned, so they have their own refinery, one is in Bombay and another is in Vizag which is still not connected to National Grid. So I cannot comment on how much quantum they will consume in those refineries. But other than that we do not have any contract with hpcl. So there is no impact on HPCL volumes as far as fitment is concerned.
Pratyush Kamal
Okay, no issues. Thanks a lot.
operator
Thank you. The next question is from the line of Jaleshwar Rai, an individual investor. Please go ahead. Mr. Jaleshwar, your line has been unmuted. Please go ahead with your question.
Unidentified Participant
Hello.
operator
Mr. Jaleshwar, I would request you to move a bit closer to your phone and speak a bit louder.
Unidentified Participant
Hello. Am I audible, sir?
Saurav Mitra
Yes.
Unidentified Participant
Yeah. I just wanted to understand the provisioning of reversal. How did you arrive to the figures of -230 crores for Q4 and about 294 crore for FY25?
Saurav Mitra
So your. Can you please repeat the question? It was not audible properly.
Unidentified Participant
Yes, I just wanted to ask that again. My question is regarding the UOP provisioning and the reversal of it. So can you just explain the provisioning reversal which led to about the figures of -233 crore for before and about 294 crore for FY25 per hour.
Rakesh Chawla
See as already explained by Director Finance that during the quarter. Can you. Can you hear as already explained by Director Finance that during the quarter off takers have paid 360 crore rupees which is pertaining to the financial year 2021. Since most of the provision was already done against this 2021 so there was a reversal of provision during this quarter. So accordingly after reversing this provision of around 315 crore there is net net. There is a positive impact in this current quarter due to user pay provisions.
Unidentified Participant
But not all the provisioning have been done. That’s the end of 60 crore which got reversed.
Rakesh Chawla
See, all cannot be reversed. It’s only with reference to calendar year 2021 which was recognized in financial year 2122 that payment was received in the March 25th. So provision pertaining to that amount has been reversed during the quarter.
Unidentified Participant
And so what is this 183 crore of UoP charges which has got paid off. So what does it mean and when are these charges actually put on the customers?
Rakesh Chawla
See, as we have explained that the customer whoever is able to bring material in the next three years, next three calendar years for that waiver scheme is applicable with reference to that only quantity and value which was recognized in that particular year. So some of the customers who. Who were levied LND calendar year 2021 and calendar year 2022, they have been able to bring material to that extent and Accordingly waiver of 151crore pertaining to calendar year 2022 and around balance amount for 2021 has been given in this financial year or the calendar year till March 20, December 2024.
So that amount pertain to the waiver amount.
Unidentified Participant
Okay, thank you.
operator
Thank you. The next question is from the line of Kirtan Mehta from Baroda B NP Paripas mutual fund. Please go ahead.
Kirtan Mehta
Thank you sir, for the opportunity for the expansion from 17.5 to 22.5. You mentioned that there are several spas signed by the industry players which have not yet booked the regas capacity. Could you highlight the quantum of sort of such outstanding spas where we have a possibility to sort of get the volume share particularly for FY26 and FY27.
Vivek Mittal
So of course if you look at in last two financial years I think India has signed deals close to almost 20 million tons. At least 15 to 20 million tons I would put it so 7.5 of course is the Petronet scattery volume. But in addition to this the entire 8. 9 million tonnes which Gale, Indian Oil, Biopetroleum and GSPC assigned some of them might bring it under the existing capacity agreements which Petronet has like with Gale 2.5 million ton Indian Oil 1.5 million ton GSPC 2.25 million tonne Torrent 1 million tonnes. So some of that volume might pendulum there and some of them if Gale is looking to tie up additional volume they might bring in at Dahash terminal.
So we are already in discussion but I cannot disclose for how much quantum at this point.
Kirtan Mehta
Sure sir, this is helpful. And would you be able to share your volume guidance for FY26?
Vivek Mittal
As we mentioned earlier also that demand is expected to grow in India with the implementation of CGD rounds. So normal 5 to 6% incremental is expected every year. So we expect our momentum to continue in that session.
Kirtan Mehta
Right. And the last question was about again going back to the user pay charges. You mentioned that 151 crore and 31 crore pertaining to CY22 and CY21 were given as a waiver. Would you also be able to highlight the number of cargoes that users have brought against this?
Rakesh Chawla
See this waiver is with reference to the volume for which LD was charged. So waiver is particularly for that amount which pertain to that volume. Now number of cargoes around 33tbt volume pertaining to these two calendar years which for which was eligible for waivers because they could bring additional volume. So this is approximately around 33TB2.
Kirtan Mehta
And were this volume brought in Q4 itself?
Rakesh Chawla
No, no, no, not in. See I. We have already explained this contract works for calendar year basis. So additional volume will be working. Working is done only in the calendar year. That means in the December, in September quarter of last 2024 or December quarter. Let’s.
Kirtan Mehta
Just to sort of reconfirm my understanding. What we are saying is that this 33tbt of the additional cargoes were brought by the customers during the September quarter and the December quarter. Is that right? Understand? Thank you sir.
Rakesh Chawla
See simple. You take understanding this based on the calendar you are working because we have to cover first the committed volume has to be brought and thereafter this additional volume has to be brought. So working is based on a calendar year. So nothing is booked in March. Because of that first they have to bring their committed volume for this calendar year which is calendar year 2025.
Kirtan Mehta
Understood sir. Thank you. Thanks for this clarification.
operator
Thank you. The next question is from the line of Hardik from ICICI securities. Please go ahead.
Hardik Solanki
Hi sir. Hope I am audible. So if you look at the other expenditure that has, you know dropped to 158 crore around. So you know just want to understand what would be our run rate going forward. And secondly as you mentioned that as there was an 187 crore reversal or waiver so that would be over and about 233 crore, right? Or how is it? How should one look at it? That’s number one.
Vivek Mittal
Okay, please reply. See the other expenditure of 150 crore almost approximately 150 crore that has come to the normal levels. Now because we have carved out the provisioning you can see that There is a 233crores negative line item we have given separately. So the provisioning was actually included previously in the other expenditure. That’s why it was fluctuating quarter on quarter. So now it is at the normal level of 150 crore. And going ahead this, this kind of. Normal level should be expected. The only thing that could be expected to be included is the forex loss. Again that we will give the guidance. And your next question was regarding the provisioning
Hardik Solanki
.187 crore provision. So that was included in 233.
Vivek Mittal
That was previously included but with the new guidelines we have to carve out now. Now accordingly we have restated it also in the previous quarter and the year.
Hardik Solanki
Okay, got it. And my second question is regarding what was the regasification revenue for the quarter and you can just break down the trading gain and inventory gain and also you know you give a number for the index impact.
Vivek Mittal
Yeah. The gasification revenue is 589 crores in the quarter and the trading gain and inventory gain for the year are 55 crores. Sorry, inventory gain 55 crores and trading in 52 crores. And as far as the index numbers There is a 165 crore positive at the gross margin level. 1 crore forex gain 7 crores positive at the other expenses level then depreciation of 80 crores and finance charges of 58 crores. The net impact is 36 crores in the quarter.
Hardik Solanki
So thank you. It’s really helpful. Thanks.
operator
Thank you. The next question is from the line of Nitin Tiwari from Philip Capital. Please go ahead.
Nitin Tiwari
Say good morning. Thanks for the opportunity. So the numbers that you gave for India’s for the quarter can you also help us for the same numbers for the financial year as well? The entire financial year. And secondly how should we look at these numbers as far as India’s impact function going? Right, because I remember right. I think there was a reversal expected post FY25 in terms of treatment of these figures. So can throw just some light on that. That would be a concern.
Saurav Mitra
So can you please repeat the question? There was some background noise actually while we are putting the question.
Nitin Tiwari
Sure. Sorry sir, I was saying that the India’s entire numbers.
Rakesh Chawla
Nitin some eco is there in your.
Nitin Tiwari
Yes, let me. Let me give it a try again. So I was. Is this better sir?
Rakesh Chawla
Yeah, yeah.
Nitin Tiwari
So I was saying that the India’s numbers that you gave for fourth quarter can you also give the same for. The entire financial year. That is one. And secondly if I remember right there was some reversal expected after FY25 in terms of treatment of India’s like you know basically impact. So I mean how should we look at these numbers going ahead after FY25 has ended by 26 and 27. That was the first one.
Vivek Mittal
Nitin, as, as we had explained before that the index impact will actually reverse from 25 FY25 that we had mentioned and it has now reversed. You can see that FY24 the net impact was 0. The overall net impact was 0. And FY25 the overall net impact is 13 crores positive. The backups are 619 crores. At the gross margin level positive. There is a forex loss of 62 crores and 32 crores positive. At other expenses level 328 crores of depreciation and 248 crores of finance charges. So overall impact is 13 crore positive. The thing to be noted is that 62 crores of forex loss was also there.
Still it is 13 crore positive. So going forward you can expect positive index impact barring the forex.
Nitin Tiwari
So the quantum would be in the similar range the 13 crore number that you had in FY25.
Vivek Mittal
See those numbers cannot be said because he will users are also restated according to these conditions etc but you can say that the positive number can go up.
Nitin Tiwari
Understood. And sir, my second question was actually related to volumes. So you mentioned that about 33 TB2 was pertaining for towards the UOP charges. So I mean if my understanding is right, the FY24 doesn’t didn’t have any UOP related volumes, right? FY25 had. So if we adjust for the 33TBTU then is it right to understand that on a like to like basis we actually had a volume Decline in FY25.
Rakesh Chawla
See this volume is in any case additional volume which was processed during the year. This is mainly you can say LD waiver is an accounting entry which was pertaining to that. So it is actual volume for this year only which is processed in current year by accounting method. We gave a benefit to the persons who had had been imposed LD and as a business long term business association management took a view that that was a Kobe dear or market was not conducive. So we will have to be a win win situation. So we will give waiver for that volume.
So practically this is volume for the current year only.
Saurav Mitra
Okay, I’ll ask Vivek to supplement on the know your question regarding volume decline.
Vivek Mittal
So volume. See if we look at the hedge terminal it has processed as Petron we have processed 934TBTUs split between so 875TBTUs at Dahaj and 58TBTUs at Kochi. So totaling to 934TBTUs. And we expect this moment there has been a growth of around 2% at Dahe and similarly 2% at Kochi. So we expect this momentum to continue in times to come also and with new long term contracts getting signed into India this gives an assurance that these volumes will come to overturn.
Nitin Tiwari
No? So that’s. That’s fair. What. What I was trying to get at is that given that our off takers are asked to get an incremental volume to set off against the outstanding user pay, right? So if 33tbt use of incremental Volume was brought in to set off against the outstanding UOP. So if we adjust for that 33TBTU in this year which is our total value was 934. So then I mean the net number that we are looking at is about 900 and 901 TBT. Which is on a right to like basis. Like you know in FY24 we had 919.
So I mean so if this incremental volume was not brought in then did we like you know face a decline in volume is what I was asking. Secondly, like you know, what was the Gorgon volume brought in at the age in this quarter? If we can help you with that number as well.
Vivek Mittal
3 point. Yeah. Gorgon volume at the head. YTD. YTD is 16.9 TB 2.15.9 sir. 16.9 for the entire financial year. For the financial year. You can carve out the last three buttons. 3.9.
Nitin Tiwari
Great. Thank you sir. That’s all from my end.
operator
Thank you. The next question is from the line of Akash Mehta from Canara Bank HSBC Life. Please go ahead.
Akash Mehta
Hello. Yeah, so two questions. So first is on the age utilization. So in terms of incremental, the new. Capacity addition that has kind of come. Through, what kind of utilization are we kind of expecting in fiscal 26 and fiscal 27?
Saurav Mitra
Okay, so I’ll just repeat what Mr. Vivek Nital has already told. So we are expecting a year on year growth of around 6%, 5 to 6% of LNG consumption. So considering that and also considering the fact that the Hedgehog strategic location we are pretty confident of good percentage utilization of the increased capacity.
Akash Mehta
Okay. And the second is on tariff hike. I mean this on the head as. Well as Kochi that you don’t see there is any risk in terms of the 5% hike that you are kind of taking. So that should kind of continue going ahead as well, right?
Saurav Mitra
Yes.
Akash Mehta
Okay. Okay. Those were the few questions. Thanks a lot.
operator
Thank you. The next question is from the line of Somaya V from Evindis Park. Please go ahead.
Unidentified Participant
Thanks for the opportunity, sir. So first question, given that spot energy has marginally come off between March to say April at $2 decline, are we seeing change in customer sentiments? I mean utilization rates improving for us. If you could just give some color on that.
Vivek Mittal
Yes, at least we are seeing some refiners which had switched back to naphtha. They are again coming back to natural gas. So in refinery and pet chem sector we are definitely seeing that momentum. Fertilizer of course continues to use natural gas. And CGD customers also we believe that some of them are coming back. Morbi region of course is still not competitive visa with propane prices. But if it further declines then propane can also be replaced in more medicine.
Unidentified Participant
Got it sir. In terms of Kochi, the pipeline connectivity to the Bangalore Gate pipeline. So what is the status there and what is the outlook for us in terms of utilization?
Saurav Mitra
So Kochi utilization will definitely get positively impacted once this pipeline comes through. And we have been. We are pretty much confident that this pipeline will be completed by the end of this calendar year. And it is this project is also being monitored at the Pragati at the PM office which monitors the critical projects.
Unidentified Participant
Got it sir. So also on this CAPEX breakup, so you did mention 2,500 crores for Pitcairn. So of the FY26 plans, the remaining which are the projects that we’ll be taking up. And also is this the run rate that we should expect for the next couple of years in terms of CapEx?
Saurav Mitra
Okay, so Dahij third JT that is another major project which is currently going on. Then pet chem I have already told then Kochi terminal routine capex we are expecting another 80 to 100 crore. And we are also in the process of putting up additional truck loading facilities in the hedge as well as in Kochi. Another 75 to 80 crores. And we have corporate offices building in Dwarka which we are putting up. So we have plans to spend around 70 to 80 crores on that. And we’ll be very soon shifting to a new corporate office building in Navaraji Nagar.
The new WTC which has come up in Delhi. So the plan is to have a capex of around 90 to 100 crore on that. Then we are also mandated by the government under the Satat program for CBG plants. So we plan to spend around 100 crores on that. Then Gopalpur LNG terminal also we have a plan of around 300 crores. So these are the broad expenditure heads which we can share at this moment.
Unidentified Participant
Sure. So just couple of follow ups. So one, this 300 crores that you mentioned for Bhopalpur is part of FY26 plan. And if you just give a bit more color on what are the total cost expected for Gopalpur and what are the timelines that we are looking at that would be helpful.
Saurav Mitra
Okay, so Gopalpur we had already got the board approval way back in 2022 and based on that we have already started the land Acquisition process, it is at an advanced stage. So going forward any terminal takes about three to four years to build and come up. The board approved number for estimated capex is around 2,300 crore.
Unidentified Participant
Sir, I remember earlier you know in terms of finalizing projects so we had some kind of a you know back to back contract you know for going into the project. So if you could just help us with that, you know, thoughts there.
Saurav Mitra
Okay. Mr. Mittal will throw some light on that.
Vivek Mittal
So you are referring to Gopalpur terminal or otherwise?
Unidentified Participant
Yes, yes.
Vivek Mittal
So we are already in discussion with our promoter offtakers for capacity booking or sale of volume. So those discussions are ongoing. But having said that we are also open that even if there is no long term commitment we may look at setting up a terminal. Because we definitely believe in the growth of natural gas market specifically in the eastern region of of the country. We can ensure good utilization of that terminal.
Unidentified Participant
Sir, in terms of any pipeline connectivity that we require there or more or less it is there. It’s just on the last night there.
Vivek Mittal
Are already multiple pipelines which are crisscrossing that region. One is the jhbdpl. Second is Sri Kulam Angul pipeline and third is Mumbai Nagpur Jamsabura pipeline. So we’d be connected to all those three networks through sapel.
Unidentified Participant
Sure. Thanks a lot.
operator
Thank you. The next question is from the line of Sramesh from NirmalBank Equities Private Limited. Please go ahead.
S. Ramesh
Good morning and thank you very much. So if you’re looking at the petrochemical project modules what is the progress you are expecting on import of ethane and propane before you start the petrochemical production and if you can shed some light in terms of whether you see some revenue from the end propane trading in FY27 or will it be dovetailed into the startup of the petrochemical project.
Vivek Mittal
So see the feedstock for petrochemical plant is propane not ethane Ethane handling facilities we are setting up. So again we are in discussion with couple of players. Either they bring in their own ethane and we provide tolling services for that or we import ethane and supply ethane to them. So both the models are open and we are in advanced discussion with some players over there as far as propane is concerned. So propane trading is not. We are envisaging. We are not envisaging in FY27 for sure it will be towards FY28.
S. Ramesh
Okay. On the Gopalpur project earlier it was an FSRU so is there any finalization of the plan to make it a land based terminal or are you still proceeding with the FSRU model?
Saurav Mitra
No, no, we have not tied up an MoU with the Odisha government also for the land. And now we are, you know, in. In. In in advanced stage of the land procurement. And we are going to set up a land based terminal.
S. Ramesh
Okay, well, that will mean that project cost will go up to about 5000 crores, right?
Unidentified Speaker
Yes, exactly.
S. Ramesh
Okay. So with that we bring the conference call to a close. Let me thank all the investors and analysts who joined the call. Let me also thank the management. And once again congratulate Mr. Mitra for taking over as Director of Finance. And I’ll hand over the call to the management for the closing remarks. Thank you very much, sir.
Saurav Mitra
So, thank you. Thank you. Till we meet again.
operator
Thank you on behalf of Tirmalbang Equities Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.