India’s largest importer of liquefied natural gas, Petronet LNG, has signed a deal with state-run producer Oil India to cooperate in various fields.
Both Petronet and OIL announced the signing of the memorandum of understanding via social media on Wednesday.
Under the deal, Petronet said the two firms would explore “the business opportunities in the field of monetization of isolated and stranded gas fields through LNG/CNG route, CBM, green hydrogen, and CBG.”
The company did not provide additional information.
Petronet operates the 17.5 mtpa Dahej terminal and the 5 mtpa Kochi plant on the west coast of India.
The firm is also working on the Gopalpur FSRU-based import facility in Odisha as it looks to establish its presence on the eastern coast of the country.
Petronet recently said it expects India’s LNG imports to increase in the first quarter of this year due to lower spot prices.
India’s LNG imports dropped last year due to mostly high spot prices and Petronet’s terminals logged lower utilization rates in the fourth quarter.
However, spot prices have considerably dropped during the last two months due to mild weather in Europe and full storages.
The JKM LNG price for March settled at $22.115 per mmBtu on Tuesday.