MIRA INFORM REPORT

Report Date :

30.06.2011

IDENTIFICATION DETAILS

Name :	PETRONET LNG LIMITED
Registered Office :	First Floor, World Trade Centre, Babar Road, New Delhi – 110001
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	02.04.1998
Com. Reg. No.:	093073
Capital Investment / Paid-up Capital :	Rs.7500.000 Millions
CIN No.: [Company Identification No.]	L74899DL1998PLC093073
TAN No.: [Tax Deduction & Collection Account No.]	DELP05642A
PAN No.: [Permanent Account No.]	AAACP8148D
Legal Form :	A Public Limited Liability Company. The Company’s Share are Listed on the Stock Exchange.
Line of Business :	Import and Re-gasification of Liquefied Natural Gas (LNG).
No. of Employees :	280 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (66)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 110000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an established company having fine track records. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	First Floor, World Trade Centre, Babar Road, New Delhi – 110001, India
Tel. No.:	91-11-23411411/ 23413130/ 23413616
Fax No.:	91-11-23414271
E-Mail :	rkgarg@petronetlng.com webmaster@petronetlng.com investors@petronetlng.com
Website :	http://www.petronetlng.com
LNG Terminal, Dahej :	Plot No. 7/A, GIDC Industrial Estate, Dahej, Talukavagra, Distt. Bharuch - 392 130, Gujarat, India
Tel. No.:	91- 2641- 257249/ 257004 to 257007 and 253182
Fax No.:	91- 2641- 257252/ 253184
Kochi Site Office :	Survey No.347, Puthuvypu, PO: 682508, Kochi, India
Tel. No.:	91-484 -2502259/ 60/ 2500068
Fax No.:	91-484 -2502264

DIRECTORS

(AS ON 31.03.2011)

Name :	Mr. G. C. Chaturvedi
Designation :	Chairman
Name :	Dr. A. K. Balyan
Designation :	Managing Director and CEO
Name :	Mr. C. S. Mani
Designation :	Director (Technical)
Name :	Mr. B. C. Tripathi
Designation :	Director
Name :	Mr. R. K. Singh
Designation :	Director
Name :	Mr. D. K. Sarraf
Designation :	Director
Name :	Mr. A. M. K. Sinha
Designation :	Director
Name :	Mr. Dominique Pelloux-Prayer
Designation :	Director
Name :	Mr. Tapan Ray
Designation :	Director
Name :	Mr. D. P. Roy
Designation :	Director
Name :	Mr. P. K. Chadha
Designation :	Director
Name :	Mr. Apurva Chandra
Designation :	Director

KEY EXECUTIVES

Name :	Mr. R. K. Garg
Designation :	Sr. Vice President - Finance and Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 31.03.2011)

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Bodies Corporate	375,000,000	50.00
Sub Total	375,000,000	50.00
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	375,000,000	50.00
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	74,271,450	9.90
Financial Institutions / Banks	349,447	0.05
Foreign Institutional Investors	85,166,583	11.36
Sub Total	159,787,480	21.30
(2) Non-Institutions
Bodies Corporate	17,059,388	2.27
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	105,587,172	14.08
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	12,689,725	1.69
Any Others (Specify)	79,876,279	10.65
Trusts	217,109	0.03
Overseas Corporate Bodies	75,001,000	10.00
Non Resident Indians	3,788,304	0.51
Clearing Members	869,866	0.12
Sub Total	215,212,564	28.70
Total Public shareholding (B)	375,000,044	50.00
Total (A)+(B)	750,000,044	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
Total (A)+(B)+(C)	750,000,044	100.00

BUSINESS DETAILS

Line of Business :

Import and Re-gasification of Liquefied Natural Gas (LNG).

PRODUCTION STATUS

Particulars	AS ON 31.03.2011
Licensed Capacity	Not Applicable
Installed Capacity	10.00 MMTPA
Actual Production	8.64 MMTPA

GENERAL INFORMATION

No. of Employees :

280 (Approximately)

Bankers :

· Allahabad Bank

· Asian Development Bank

· Bank of America

· Bank of Baroda

· BNP Paribas

· Canara Bank

· Citi Bank

· Credit Agricole

· Development Bank of Singapore

· Federal Bank

· HDFC Bank

· ICICI Bank Limited

· IDFC Ltd

· Indian Overseas Bank

· International Finance Corporation (Washington)

· Jammu and Kashmir Bank

· Oriental Bank of Commerce

· Punjab National Bank

· Society Generale

· State Bank of Hyderabad

· State Bank of India

· State Bank of India, Singapore

· State Bank of Patiala

· State Bank of Travancore

· Standard Chartered bank

· Syndicate Bank

· The Hongkong and Shanghai Banking Corporation Limited

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
*Term Loans from:
- Banks	14750.157	12920.738
- Others	15605.619	8076.980
** Short Term Loans from bank	0.000	2000.000
Total	30355.776	22997.718
NOTE: * Secured by first ranking mortgage and first charge on pari passu basis on all movable and immovable properties, both present and future including current assets. ** Secured by way of hypothecation on the entire stocks, book debts and other moveable assets of the Company by way of subservient charge.

Banking Relations :	--
Statutory Auditors:
Name :	V. Sankar Aiyar and Company Chartered Accountant
Related Parties (Promoters)	· Indian Oil Corporation Limited · Bharat Petroleum Corporation Limited · Oil and Natural Gas Corporation Limited · GAIL (India) Limited

CAPITAL STRUCTURE

(AS ON 31.03.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
1200000000	Equity Share	Rs.10/- each	Rs.12000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
750000044	Equity Share	Rs.10/- each	Rs.7500.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		7500.000	7500.000	7500.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		19301.553	14848.781	12334.346
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		26801.553	22348.781	19834.346
LOAN FUNDS
1] Secured Loans		30355.776	22997.718	22816.976
2] Unsecured Loans		1805.600	2000.425	0.000
TOTAL BORROWING		32161.376	24998.143	22816.976
DEFERRED TAX LIABILITIES		3480.000	3262.000	2722.000
TOTAL		62442.929	50608.924	45373.322
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		27024.392	28828.599	14686.209
Capital work-in-progress		22028.739	13183.593	18469.846
INVESTMENT		11648.849	5386.202	3042.621
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2479.795	2222.644	3855.779
	Sundry Debtors	8471.689	5034.822	6711.504
	Cash & Bank Balances	1540.210	3404.961	6577.934
	Other Current Assets	46.786	30.788	168.348
	Loans & Advances	1336.089	1522.822	783.165
Total Current Assets		13874.569	12216.037	18096.730
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	8316.803	6042.589	5715.053
	Other Current Liabilities	2031.259	1406.115	1650.173
	Provisions	1785.558	1556.803	1556.858
Total Current Liabilities		12133.620	9005.507	8922.084
Net Current Assets		1740.949	3210.530	9174.646
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		62442.929	50608.924	45373.322

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income (Sales)	131057.467	106029.365	84287.021
		Services	915.384	461.513	0.000
		Other Income	679.564	978.302	765.002
		TOTAL (A)	132652.415	107469.180	85052.023
Less	EXPENSES
		Raw Materials Consumed	118012.049	96647.618	73756.260
		Personnel Expenses	305.627	204.366	195.716
		Operating and Other Expenses	1492.512	1174.354	1322.275
		TOTAL (B)	119810.188	98026.338	75274.251
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		12842.227	9442.842	9777.772
Less	FINANCIAL EXPENSES (D)		1931.309	1839.287	1012.152
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10910.918	7603.555	8765.620
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1846.765	1608.581	1025.184
	PROFIT BEFORE TAX (E-F) (G)		9064.153	5994.974	7740.436
Less	TAX (H)		2868.000	1950.000	2556.000
	PROFIT AFTER TAX (G-H) (I)		6196.153	4044.974	5184.436
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		11894.131	9959.696	6810.839
Less	APPROPRIATIONS
		Transfer to General Reserve	1100.000	580.000	500.000
		Dividend	1500.037	1312.542	1312.517
		Tax on Dividend	243.344	217.997	223.062
	BALANCE CARRIED TO THE B/S		15246.903	11894.131	9959.696
	EARNINGS IN FOREIGN CURRENCY
		Interests Income	6.287	6.693	5.955
	TOTAL EARNINGS		6.287	6.693	5.955
	IMPORTS
		Raw Materials	111938.647	89725.784	72532.568
		Stores & Spares	20.175	25.696	15.396
		Capital Goods	1128.520	1645.386	590.371
	TOTAL IMPORTS		113087.342	91396.866	73138.335
	Earnings Per Share (Rs.)		8.26	5.39	6.91

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.67	3.76	6.10
Net Profit Margin (PBT/Sales)	(%)	6.92	5.65	9.18
Return on Total Assets (PBT/Total Assets}	(%)	22.16	14.61	23.61
Return on Investment (ROI) (PBT/Networth)		0.34	0.27	0.39
Debt Equity Ratio (Total Liability/Networth)		1.65	1.52	1.60
Current Ratio (Current Asset/Current Liability)		1.14	1.36	2.03

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL PERFORMANCE

In 2010-11, the company has achieved substantial growth, both in turnover and profit. The turnover during the year was Rs.131972.800 Millions against Rs.10,6490.900 Millions in 2009-10. Gross margin stood at Rs.14640.400 Millions against Rs.1,0821.600 Millions in the previous year. Net profit during the year was Rs.6196.200 Millions against Rs.4045.000 Millions in the previous year. The emphasis on higher capacity utilization, higher sales and better operational efficiencies led to increased profitability.

LNG SOURCING

With an aim to quench India's growing gas demand, stemming primarily from high-priority sectors such as power and fertilizer, and armed with expanded facilities at the Dahej LNG Terminal, your Company has been engaged in sourcing additional volumes of LNG on long-term, medium-term and spot basis for its downstream customers. The Company continued to maintain excellent relations with most of the global LNG suppliers for import of LNG supplies. The Company intends to diversify sources of LNG to ensure security of supplies. For the unutilized capacity at Dahej LNG Terminal as well as for the expected capacity at the Greenfield Kochi Terminal, the Company is inconstant touch with various LNG suppliers to source LNG volumes beyond the present 7.5 MMTPA imported from Qatar. To meet the growing additional requirement of natural gas in country, the Company has also executed short-term deals with various global LNG suppliers for approximately 1.5 MMTPA. Constant efforts are being made to supply RLNG to feed the demand created due to shortage in domestic supplies and demand generated from new projects.

OPERATIONS AT DAHEJ

During the financial year 2010-11, the company has imported 125 cargoes (including 9 spot cargoes) representing 7.98 MMTPA and 412.21 Trillion British Thermal Units of regasified LNG was sold. The Company has also provided regasification services to 7 LNG Cargoes to Gujarat State Petroleum Corporation and 4 LNG cargoes to GAIL (India) Limited representing 28.14 Trillion British Thermal Units during the financial year 2010-11.

Additional LNG Jetty at Dahej

The capacity utilization of Dahej Terminal is increasing and the operational practices are at par with the highest international standards. The Company has commenced construction of second LNG Berth (Jetty) in Dahej to mitigate associated risks of port operations of existing jetty and also to enhance the capacity of terminal from its existing capacity of 10 MMTPA. The two EPC contracts for the construction of jetty were awarded in January, 2011, and the jetty is scheduled for commissioning by end of September, 2013. Presently, the EPC contractors are carrying out basic engineering activities for construction of marine and top side works for the same.

Shipping Arrangement

Presently, three LNG tankers (Disha, Raahi and Aseem) are regularly bringing LNG cargoes from RasGas, Qatar, to Dahej as per schedule. These three ships are transporting the contracted quantity of 7.5 MMTPA of LNG.

The Shipping Corporation of India (SCI) is a major equity partner in the ship-owning companies. Disha and Raahi have been manned, managed/maintained and operated by SCI since December 2008. SCI is manning Aseem since delivery. K-Line is providing technical management from delivery to first dry dock and is training SCI for management of Aseem.

Pilot Project for Supply of LNG in Cryogenic Vehicles

The Company has successfully completed the pilot project which was started in year 2007, for loading of LNG in cryogenic road tankers. During the year, 689 tankers were loaded and supplied to customers in the states of Gujarat and Maharashtra.

Direct Marketing of LNG

For consumers not connected with gas pipe, the Company has initiated steps to market the LNG directly to consumers across the country through overland transportation using LNG trucks/ hubs. This direct marketing model is prevalent in several parts of the world and is an effective way of reaching out to far-flung consumers in need of fuel supply. The concept makes use of the already existing road network as against setting up of complex pipeline network.

LNG TERMINAL AT KOCHI

The construction of the Greenfield LNG Receiving, Storage and Re-gasification Terminal at Kochi is in progress. The capacity initially envisaged was 2.5 MMTPA. In January, 2011, the Company awarded contract for additional re-gasification facilities to handle and re-gasify an additional 2.5 MMTPA LNG to the present Regas contractor, taking the total capacity of Kochi LNG Terminal to 5 MMPTA. Civil works of the storage tanks being built by IHI Corporation, Japan, are nearing completion. Mechanical works are in progress with hydrostatic test being planned in June, 2011. The Marine facilities, being built by AFCONS Infrastructure Ltd., India, are also in an advanced stage of completion. Work is under progress in the Re-gasification facilities awarded to CTCI, Taiwan. Civil works on buildings and structures as well as piping and equipment erection are in progress. At present, nearly 3000 workers are working at the site. The terminal of 5 MMTPA capacities is slated to be commissioned in the third quarter of 2012.

FINANCING

The Company has re-financed its entire long term rupee loan of Rs.30,000.000 Millions from a consortium of Indian lenders. In the process, the Company could achieve substantial saving in its interest’s costs.

Further, the company has successfully made drawdown of USD 200 Million from International Finance Corporation (IFC), USA. The company, in order to limit the risks of fluctuation in interest rates and currency, has entered into Cross-Currency Swap Transactions consisting of exchange of both interest and principal for a component of the IFC loan.

As on 31st March, 2011, a loan of Rs.30,340.000 Millions is outstanding in the Books of Account which consist of Rs.15220.000 Millions from Indian lenders, Rs.5906.200 Millions from Asian Development Bank and Rs.9220.000 Millions from International Finance Corporation.

FUTURE PLANS

Considering the substantial demand of natural gas in the country, the Company is planning to construct one more LNG terminal on the east coast. The Company has already assessed the market demand in the region and is now looking for a suitable location and would initiate Detailed Feasibility Report for building a LNG Terminal on the east coast.

SOLID CARGO PORT AT DAHEJ

A Solid Cargo Port, through a Joint Venture Company, namely, Adani Petronet (Dahej) Port Private Limited, is being implemented in which your Company holds 26% of the equity. The port is now mechanically complete and the initial operations have already commenced. The Solid Cargo Port would have facilities to import/ export about 15 MMTPA capacity of bulk products like coal, steel and fertilizer.

GAS-BASED POWER PROJECT

The Company is planning to set-up a power plant of 1200 MW capacity at Dahej contiguous to its existing LNG Terminal. The Government of Gujarat has already earmarked 50 hectares of land for the same. The Detailed Feasibility Report and integration study with existing LNG terminal have been completed. Also, the Company is in the process of completion of various pre-project activities such as sea water utilization study, fresh water option study etc. The Ministry of Environment and Forests (MoEF) has issued Terms of Reference (TOR) for preparing various reports including EIA for its approval for power plants. The commercial arrangements for sale of power are being finalized.

MANAGEMENT DISCUSSION AND ANALYSIS

Global LNG Scenario:

With greenhouse emissions and global warming taking centre stage at global for a, with environmentalist crying hoarse over the depleting natural resources and economic pundits predicting a bleak fuel future, is it any surprise that over the past few decades, the inherent advantages of natural gas versus other liquid fuels commonly used in industry is being eulogized by everyone. The lower carbon emissions and the efficiency of natural gas as a fuel have made it the fuel of choice in the developed world. The developing nations like China and India are aggressively adopting natural gas to fuel their industry and to make their economic growth more environmentally sustainable.

During the last decade, the image of LNG market as an exclusive club for industrialized countries has been shed. With company setting up a Regasification facility at Dahej, Gujarat, India became the first developing country to enter this new energy market. But other countries like Thailand, Argentina, Brazil, Turkey etc. have started or are in the planning and development stages to import LNG. However, Japan and South Korea are the dominant consumers and would remain market leaders even in the future. Though gas demand in these two countries is expected to grow marginally or even decline in the long term, India and China are expected to emerge as major players in the Asian regional LNG market. Both the nations are expanding their gas pipeline network and adding more Regasification terminals. In the long run, the entry of new players globally will expand the market and develop new trade flows.

Currently, most of the major world economies are still recovering from the financial meltdown that began towards the end of 2008 and continued through 2009. In 2010, the world economies started limping back to normalcy and the trend is expected to continue in 2011. The global economic recovery would concomitantly lead to price and volume recovery in the LNG trade.

In the past few years, with the sudden rise of shale gas in the United States, the LNG industry witnessed a paradigm shift. Due to its declining conventional gas production and pipeline imports, for long, the United States was touted to become a significant importer of LNG. However, that was not to be. Shale gas has dramatically altered the US gas market landscape. It not only turned the US domestic market into a surplus, but it is expected that by 2015, the United States may export LNG. With the US retooling its regasifiaction terminals for liquefying natural gas, the LNG market equations have changed significantly. This will have a major impact on countries like Qatar which were gearing up their LNG supply chain with super-sized LNG trains of 7.8 MMTPA capacity and Q MAX and Q FLEX mega LNG vessels to supply to the United States. Qataris will have to divert the LNG supply and shipping capacity to other countries and new emerging consumers in the LNG market.

Before the March 2011 earthquake in Japan, there was an oversupply in the market. However, with the recent earthquake, most of the suppliers have put on hold their decision to sell surplus volumes and both Buyers and Sellers are evaluating the impact of earthquake on LNG demand with caution. Over the past few years, several key trends have emerged not only in the structure of the deals, but also the players executing them. Those trends included: a rebound of the flow of spot LNG from the Atlantic to Asia; stronger spot demand in new markets like South America and the Middle East; and the Qatari strategy of securing new markets for LNG supply that originally targeted the US market. Finally, this increased need for flexibility attracted traders to become more involved in the business in 2010.

LNG trade grew by approximately 20% in 2010 to 219 million tonnes as a raft of new supply came on stream and demand bounced back strongly from the global economic crisis. Qatar accounted for half the 2010 growth in supply with the completion of its mega-train expansion. Russia, Indonesia, Yemen and Peru also added significant volumes as new trains either came online or were ramped up to full capacity. Nigerian production staged a strong recovery following the outages of 2009. However, North Africa saw production fall with feed gas diverted to the domestic market in Egypt and for re-injection to support oil production in Algeria.

Asia led the demand recovery with South Korea alone importing over a quarter more LNG than 2009, and there was also impressive growth in China, Japan and Taiwan. The United Kingdom and Italy provided most of the impetus to European demand growth as volumes from the new Qatari trains flowed to these markets. 2010 also saw the counter-seasonal markets of South America and the Middle East have a significant impact during the summer months. The United States provided the exception to the otherwise rosy demand picture as an expected surge in imports failed to materialize.

In terms of consumption level, countries in the Asia-Pacific region are driving the overall LNG industry. The burgeoning demand for LNG in countries like Japan (post massive earthquake, damaging nuclear power facilities and dwindling capacity), South Korea, China, and India would prompt construction of more LNG receiving terminals during the next decade.

LNG Market in India:

India’s economic growth report card has been steady at 8-9%, and it is likely to maintain the same growth rate in the coming years. As one of the fastest growing economies of the world, India is facing challenges to ensure reliable, clean and affordable energy to fuel its transformation.

In India, gas demand started from a very low base. Consequently, despite the rapid growth in Indian gas demand over the past decade, gas accounts for merely 10% of total primary energy consumption. Domestic production has nearly doubled following the commissioning of Reliance's giant Dhirubhai field in April 2009 and with no international pipelines likely, and domestic production unlikely to keep pace with domestic gas demand, a significant requirement for LNG imports is emerging. India's energy security, at the broadest level, is primarily about ensuring the continuous availability of commercial energy at competitive price to support economic growth and to meet energy needs with safe, clean and convenient form of energy. The critical element of the country's energy security are augmenting the domestic energy resource base, increasing energy efficiency, demand side management along with adequate import of energy in all forms including crude oil, natural gas and coal.

India’s current gas Demand-Supply scenario shows that there is a wide gap between demand and supply and the chasm is set to widen in the next five years. The 2010-11 figures reveal that the gas demand is around 179 MMSCMD and the indigenous supply stands at less than 140 MMSCMD. The gap is set to increase at a very fast pace. As per various analyses, the gap would vary between 70 and 100 MMSCMD in 2011-12 and by 2014-15 the gap would touch the whopping 150 MMSCMD mark!

Indigenous gas production has increased sharply since the commissioning of Reliance's D6 gas field in the Krishna Godavari Basin and production in 2011 is set to be more than double that of 2008 levels. But it is significantly lower than what was earlier projected. Production is set to continue to rise as D6 reaches peak production over the next few years. In the longer term, ongoing licensing rounds and exploration activity in basins in eastern offshore (KG, Cauvery and Mahanadi) substantiate forecast of increasing gas production up to year 2022 before production begins to decline.

India currently has over 9,000 kilometers of gas transmission pipelines, but given the geographical size of the country, its gas network is in a relatively underdeveloped state. Most of the transmission and distribution infrastructure is located in the northwest of the country. The Hazira- Bijaipur- Jagdishpur (HBJ) pipeline is currently India's largest and most important transmission system. The 2,800-km pipeline serves the northern Indian market and runs through the states of Gujarat, Madhya Pradesh, Rajasthan, Uttar Pradesh, Haryana and Delhi. It has been upgraded on a number of occasions and currently has a capacity of 1,200 MMCFD. The pipeline is currently running at full capacity and GAIL (India) Limited plans to upgrade the pipeline to around 3,500 MMCFD by June 2011.

Gail and several other companies have set out on an ambitious program of infrastructure development to complete a national transmission network by 2015. The proposal would link gas supply regions off India's east coast to the major centers of demand in the south and east, as well as linking the rest of eastern India to the network.

With the growth in indigenous supply, India's relatively underdeveloped gas market is expected to expand at a greater pace and significant additional imported gas supplies will be required to meet the demand. It is most likely that this incremental demand will be met largely by LNG imports. India received its first imports in 2004 and these are set to increase considerably over the forecast period - by 2025, India is expected to be dependent on imports for around 44% of its supply and would require nearly 5,100 MMCFD of imported gas. In other words, the need for LNG in India's growing economy is too obvious. Even though a part of the shortfall will be made good by other domestic finds which are expected to come on-stream in the next few years, a large share of this incremental demand will be fuelled by LNG.

OPPORTUNITIES:

Being the first company to import LNG, the Company is instrumental in shaping the growth of the Indian Natural Gas sector. The Company has set up high industry efficiency benchmarks in LNG operations and market development. The Company's main thrust is on catalyzing the growth of Indian Gas sector through enhancing the gas supply to meet the needs of existing consumers as well as to develop new consumers.

Subject is emerging as the key player in India's supply-constrained natural gas market. Subject is the operator and owner of India's first and largest LNG terminal at Dahej. It is now exploring multiple options to further leverage the potential of imported LNG in the Indian market.

The gas market in India is rapidly evolving with strong economic growth fueling energy demand across sectors. Significant gas finds off the east coast of India, de-regulation and entry of several private and foreign players are some of the factors shaping the sectoral landscape. Further, the supply deficit situation is resulting in higher price benchmarks for supply of gas to domestic market. The Company, in addition to long-term import, has started sourcing LNG on Spot/ Short-term basis from different suppliers’ worldwide.

To meet the demand-supply gap of natural gas in the country, the Company has doubled the capacity of its first LNG re-gasification plant at Dahej from 5 MMTPA to 10 MMTPA which may be further expanded with commissioning of the second LNG berth at Dahej. The Company is also constructing another 5 MMTPA Greenfield LNG import and re-gasification plant in Kochi in the state of Kerala. This will enable the Company to expand its reach and supply of natural gas in the South Indian market. In addition, the Company is examining the feasibility of constructing another LNG Terminal in the East Coast of India.

FIXED ASSETS

· Leasehold Land

· Building

· Plant and Machinery

· Equipment and Appliance

· Furniture and Fixtures

· Speed Boat

· Vehicles

WEBSITE DETAILS:

PROFILE:

Subject is at the forefront of India's all-out national drive to ensure the country's energy security in the years to come.

Formed as a Joint Venture by the Government of India to import LNG and set up LNG terminals in the country, it involves India's leading oil and natural gas industry players. The promoters are GAIL (India) Limited (GAIL), Oil and Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL). The authorized capital is Rs.12000.000 Millions ($240 million).

BOARD OF DIRECTORS

Mr. G. C. Chaturvedi is the Secretary, Ministry of Petroleum and Natural gas. He is an IAS Officer, Uttar Pradesh (1977 Batch) and having a rich and wide administrative experience of more than 34 years. He has also completed his Post Graduation in Physics. During his services, he has held various senior level positions like Joint secretary, Ministry of Finance, Additional Secretary, Ministry of Finance and Special Director General (Finance and Accounts), Ministry of Youth Affairs and Sports etc.

Dr. A. K. Balyan has joined the Company as Managing Director and CEO w.e.f. 16th July, 2010. He holds Degree in M. Tech. from IIT, Delhi and also Ph.D. from Germany. Prior joining company, he was Director (HR) of Oil and Natural Gas Corporation Limited (ONGC) and also had additional charge as Director, In-charge Business Development and Joint Ventures, ONGC. Dr. Balyan took over as Chief-Human Resources Development of ONGC in 2002 and appointed to the Board of Directors of ONGC as Director HR in 2003. As Director (HR), he led Corporate Rejuvenation Campaign, Pioneered a study to redefine the organization norms-focusing on Roster, Roles and Responsibilities to be benchmarked with global best practices.

Mr. C S Mani is the Director (Technical) of the Company. He holds B. Tech (Chemical) degree from Indian Institute of Technology, Chennai and Master in engineering (Chemical) from Cornell university, USA.

Mr. Mani has around 35 years experience in the industry, primarily in Chemical and Petrochemical industries. During his span of service with various Companies, he has worked on most aspects of projects including conducting viability studies, selection of technology and sourcing of know-how.

Mr. Mani has worked with industrial houses of repute such as Tata Chemicals Limited for two decades and rose to a position as one of the key senior executive.

Mr. B.C. Tripathi is a Chairman and Managing Director of GAIL (India) Limited and a nominee Director of GAIL (India) Limited on the Board of company He is a Mechanical Engineer Graduate from NIT Allahabad, formerly known as Moti Lal Nehru Regional Engineering College, Allahabad. He started his career in ONGC and subsequently joined GAIL in 1984. Mr. Tripathi is one of the founder employee of GAIL and has worked under different capacities in different departments in GAIL. He was involved in the construction and commissioning of the HBJ pipeline Project, which received Silver Medal for Excellence in Project Management in the Mega Project Category from International Project Management Association, Germany.

Mr. R. K. Singh is a nominee Director of BPCL on the Board of company. Mr. Singh is the Chairman and Managing Director of BPCL. Having completed his B. Tech. in Mechanical Engineering with Honours from Banaras Hindu University (BHU) in 1974, Mr. Singh had a brief stint in Hindustan Lever and Hindalco before embarking on his career in Bharat Petroleum Corporation Limited (BPCL) in 1978. Since then, Mr. Singh has held various important assignments, both in the Refinery and Marketing divisions of the company.  

Mr. D. K. Sarraf is a nominee Director of ONGC on the Board of company. He is an Associate Member of ICWAI and ICSI. He is holding the position of Director (Finance) in Oil and Natural Gas Corporation Limited. He has nearly 30 years of rich and varied experience in the Oil Industry. Before joining ONGC, he had served in Oil India Limited, ONGC Videsh Limited and also enriched with regulatory experience of serving in Oil Co-ordination Committee under MOP&NG. Mr. Sarraf has been instrumental in several oil and gas acquisitions in OVL during last three years.

Mr. Akhoury Manoj Kumar Sinha, a Mechanical Engineer, has over 33 years of diverse experience with the Indian Oil Corporation Limited, the largest commercial organization in India. Mr. Sinha possesses rich experience of efficiently managing critical portfolios across the whole marketing value chain of the downstream oil sector. During Mr. Sinha’s leadership Indian Oil continued to retain position of pride as India’s No.1 Petroleum Retailer.

Under his leadership, Indian Oil has won many accolades over the years in retailing viz "Gold Winner" in petrol stations service, "Most Admired Retailer" of the year in Rural Retailing etc.

Prior to taking over as Director (P&BD), Mr. Sinha worked as Executive Director (Corporate Planning and Economic Studies) at Corporate office of Indian  Oil and was responsible for building futuristic scenarios, analysis of external and internal environment, SWOT framework for strengthening planning process and for venturing into new business domai

Mr. M. Dominique PELLOUX-PRAYER is the Nominee Director of GDF International on the Board of company. He is graduate engineer from the Ecole Centrale de Paris, joined Gaz de France in 1980. He worked as Deputy Vice-President for LNG within Gaz de France from 2004 to 2008, and was appointed as of October 2008 as Vice-President of GDF SUEZ, heading the Facilities Asset Management Department of the LNG Division, in charge of the interests of the Group in liquefaction plants and supply-driven receiving terminals.

Mr. Tapan Ray is the Managing Director of Gujarat State petroleum Corporation Limited (GSPCL). He is the nominee Director of Gujarat Maritime Board/ Govt. of Gujarat on the Board of company. Before joining the company in Nov., 2009, he was Principal Secretary (Economic Affairs), Finance Department. He is an IAS Officer, Gujarat (1982 Batch) and having a rich administrative and corporate experience. He also holds a degree in Engineering from IIT Delhi, a post graduate degree in public policy from Princeton University, USA, a Masters in Public Administration from Syracuse University, USA and a degree in law with various diplomas.

Mr. D. P. Roy is an Independent Director on the Board of Company. He was Ex- Chairman of SBI Capital Markets Limited. He holds degree in Master of Science (Chemistry) from Jadavpur University Calcutta. He is also certified Associate of the Indian Institute of Bankers and Member of the Indian Council of Arbitrators. He has rich and wide experience in Banking Sector. He joined State Bank of India in 1963 and served there in various senior executive and managerial posts like President and CEO New York and Country Manager USA, Deputy Managing Director and Group Executive (Associates and Subsidiaries) etc.

Mr. P. K. Chadha is an Independent Director on the Board of Company. He is a graduate in Mechanical Engineering. He served with Hindustan Lever Limited in various capacities in manufacturing and general management functions. In 1980, he was appointed to the Board of Hindustan Lever Limited. Mr. Chadha is presently serving as a Non – executive Director on the Boards of various Companies in India. He is also a Management Consultant to some Companies in India and abroad.

Mr. Apurva Chandra is an Independent Director on the Board of Company. He has completed B. Tech. in Civil Engineering (1981-85) and M. Tech. in Structural Engineering (1985-87) from IIT, Delhi and joined Indian Administrative Services (IAS) in 1988. Presently he is Joint Secretary (Marketing), Ministry of Petroleum and Natural Gas (MOP&NG). He has worked on various assignments in Government of India and Government of Maharashtra.

PRESS RELEASE

Petronet LNG Limited and Gazprom Marketing and Trading Singapore signed MOU for long term supply of LNG

01 Jun 2011

Singapore, London and Delhi - 30th May 2011, Petronet LNG Limited (Petronet) and Gazprom Global LNG (GGLNG), through its Singapore affiliate, Gazprom Marketing and Trading Singapore (GM&TS), a 100% subsidiary of Gazprom Marketing and Trading, have concluded a memorandum of understanding for the long term supply of LNG.

Under the terms of the agreement, Petronet will receive up to 2.5 million tonnes per annum of LNG from GM&TS’ international supply portfolio for up to 25 years.

This transaction illustrates the Parties’ objective to develop a direct long-term relationship after GM&TS’ successfully delivery of a number of spot cargoes via third party arrangement in Petronet’s Dahej LNG terminal.

GM&TS sees India as one of its key markets for LNG supplies, which also include Japan and other North Asian countries, as it continues to strengthen its presence and operations in Asia-Pacific. This supports Petronet in its vision to become a key energy provider to the nation by leveraging the company’s unique position in the LNG value chain along with an international presence.

"This MOU is a key step in diversifying our LNG supply portfolio and this relation will go long way in developing mutually beneficial relation between the two Companies” said Mr. A K Balyan, Managing Director and CEO."

Nigel Kuzemko, Gazprom’s Singapore-based Director of LNG Development said; "We are delighted to have entered into this agreement with Petronet, given their proven operational capability and their key role as aggregator of LNG in India, we see Petronet as a strong strategic partner for Gazprom Marketing and Trading Singapore."

ABOUT PETRONET

Petronet LNG Limited, one of the fastest growing world-class companies in the Indian energy sector, has set up the country's first LNG receiving and regasification terminal at Dahej, Gujarat with present capacity of 10 MMTPA, and is in the process of building another 5 MMTPA terminal at Kochi, Kerala.

Petronet LNG is at the forefront of India's all-out national drive to ensure the country's energy security in the years to come.

Formed as a Joint Venture by the Government of India to import LNG and set up LNG terminals in the country, it involves India's leading oil and natural gas industry players. Our promoters are GAIL (India) Limited (GAIL), Oil and Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL).

Gazprom Marketing and Trading Singapore (Pte.) Limited

Gazprom Marketing and Trading GM&T Singapore started operations as a platform for LNG trading, shipping and originating carbon reduction projects in the Asia Pacific markets.

We have developed a wide range of emission reduction projects in the region under the Clean Development Mechanism of the Kyoto Protocol. GM&T Singapore is helping to build a significant and sustainable carbon business with access to European, Japanese and other emerging markets.

The business has also extended the Group’s commodity reach beyond its core portfolio offering by launching a trading desk specialising in crude, LPG and currency. GM&T has been trading financial oil products on a number of exchanges since 2006 and can now offer 24-hour coverage of the market between Singapore, London and Houston.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.45.05
UK Pound	1	Rs.71.92
Euro	1	Rs.64.34

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		66

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.