Petronas plans RM644mil investments in India

Petroliam Nasional Bhd (Petronas) is targeting to invest US$150mil (RM644mil) in India over the next five years to expand its presence in the country’s lubricant business

Petroliam Nasional Bhd (Petronas) is targeting to invest US$150mil (RM644mil) in India over the next five years to expand its presence in the country’s lubricant business.

The national oil company said the investments included building a US$50mil (RM215mil) lubricant blending plant in the republic.

The plant is expected to start operations by the first quarter of 2018, Petronas said in a statement.

“We are aiming to triple our market share in India’s lubricant market by 2022.

“Globally, we are among the top-10 lubricant players by market share.

“We are striving to be among the top-five in five years,” said Petronas president and group chief executive officer Datuk Wan Zulkiflee Wan Ariffin.

Petronas, which has been in business in India for more than two decades, said that it is looking to expand its liquefied natural gas (LNG) supply in India to ride along the country’s economic growth.

India, which is one of the fastest growing economies in the world, is expected to see rising demand for LNG from the power, agriculture and transportation sectors.

Petronas said it has delivered 15 LNG cargoes to India year-to-date and delivered to India the first cargo produced from its floating LNG production facility, the first such facility in the world.

Indian English daily newspaper The Hindu quoted Wan Zulkiflee as saying that Petronas was looking at opportunities to invest in the LNG infrastructure in India.

“In LNG, there are infrastructure bottlenecks in India and we are keen to invest in infrastructure to connect the unserved markets in India,” said Wan Zulkiflee.

“We may do this in partnership with Indian companies,” he said to reporters in India, adding that the infrastructure includes pipeline and regasification facilities.

The news came a few weeks after Petronas said that it would not proceed with a proposed C$36bil (RM121.4bil) LNG project in western Canada.

Meanwhile, The Times of India reported that India had contributed about US$1.5bil to Petronas’ annual revenue of about US$47.8bil in 2016, citing Wan Zulkiflee as saying that he expects India’s revenue contribution to Petronas to rise.

The report said that earlier this month, the top executives of Petronas had spent a week in India visiting various companies. 

Source: The Star

Posted on : 11 August 2017
//
Last Updated : Thursday 17th October 2019