IFC Support to Petronet LNG to Improve Access to Cleaner Energy in India
IFC has agreed to help Petronet LNG Limited build a liquefied natural gas import and regasification terminal in southern India that will give consumers access to a clean and affordable source of energy. This will help the company significantly reduce harmful environmental emissions, while making energy cheaper for private and commercial users by displacing more expensive imported fuels.
The deal includes a $150 million loan for IFC’s own account and an additional $150 million from commercial lenders. Petronet LNG, a publicly listed company, has a major import and regasification facility in Dahej, Gujarat. The company plans to expand its operations to Kochi in southern India.
“IFC is pleased to partner with Petronet LNG. In only three years, the company has emerged as the main player in India’s natural gas sector,” said Rashad Kaldany, IFC Director for Infrastructure. “We are providing flexible, growth-oriented corporate financing that will support the company’s expansion, enabling it to provide environmentally clean fuel.”
“In addition to providing us with much-needed funding, IFC’s support also opens new financing options at competitive rates for our future projects,” said Prasad Dasgupta, Managing Director and CEO of Petronet LNG.
The Indian government now allows the imports of liquefied natural gas. Petronet’s production accounts for about 25 percent of the country’s total gas consumption. The increasing demand has led to the company’s decision to double its import capacity at Dahej and build a new facility.
“This investment shows our commitment to clean energy and to helping India meet its growing energy needs. Providing long-term, fixed-rate local currency financing to support infrastructure projects is a unique aspect of our value proposition,” said Paolo M. Martelli, IFC Regional Director for South Asia.
This project supports IFC’s strategy in India, which fosters pioneering private projects and public-private partnerships through investments, resource mobilization, and advisory services to improve infrastructure facilities. In the gas sector, IFC aims to address India’s need for an increased environmentally clean source of energy at competitive costs.
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