Petronet LNG (PLNG.NS): Key takeaways from Kochi LNG terminal visit

We visited Petronet LNG's (PLNG IN) Kochi LNG regasification terminal and interacted with management on Sep 24-25. Nameplate capacity is 5 MMTPA, commissioned Aug'13, located at Puthuvypeen SEZ. Main end customers are BPCL, FACT, Mangalore Chemicals and Fertilisers, ONGC Mangalore Petrochemicals and MRPL. Terminal utilisation is low currently at ~25%, mainly due to limited pipeline connectivity beyond Kerala and parts of Tamil Nadu. Cumulatively the terminal has handled 180 ships till date, comprising 147 regas cargoes, eight storage, 23 gas-up/cool down (GUCD) jobs, and two LNG bunkering; it handles ~20 LNG regas cargos annually. PLNG has a long-term LNG SPA of 2.625 mtpa with ExxonMobil Australia, with back-to-back offtake agreements with GAIL (30%), IOCL (30%) and BPCL (40%); most cargos are delivered at Kochi, with some diverted to Dahej based on offtaker demand (Kochi tariff charged for diverted volumes). The lone jetty can handle vessels of 65,000-216,000 cbm (Q-Flex size);