MANILA, PHILIPPINES – The Asian Development Bank (ADB) will provide a $150 million loan to Petronet LNG Ltd to increase the capacity of Petronet’s LNG terminal in Gujarat state in India to help reduce the unmet energy demand in the country, which has been one of the major constraints for efficient economic growth.
“The expanded terminal will help India move toward its target of greater natural gas use, thereby enhancing its energy security and shifting to cleaner forms of energy,” said Siddhartha Shah, Principal Investment Specialist at ADB’s Private Sector Operations Department.
The project, which will increase the supply of natural gas to 15 million metric tons per annum (mmtpa) from the current 10 mmtpa, will help meet demand for compressed natural gas for transportation, piped gas to households, fuel for gas power plants, and feedstock for fertilizer plants, mostly in north and west India.
The additional supply will translate to a reduction in the emission of around 3.15 million tons of carbon dioxide every year.
ADB helped finance Petronet LNG’s first terminal through an equity investment in January 2004. It also financed the first expansion by providing a loan syndicated through a partial credit guarantee from a German development agency.