At the 25th edition of Indian Infrastructure’s “Gas in India” conference, B.K. Chaturvedi, Former Cabinet Secretary, Secretary, Ministry of Petroleum and Natural Gas, and Member, Planning Commission; and Suresh Mathur, Former Managing Director and Chief Executive Officer, Petronet LNG, were felicitated for their outstanding contribution to the gas sector. On the occasion, they shared key insights from their journey in the sector. Excerpts from their addresses…
B.K. Chaturvedi
The energy sector is very dear to me for a number of reasons, but primarily because I have been a part of it for a long time. I have worked in various capacities in the power, gas and petroleum sectors, and been a part of the Planning Commission’s energy initiatives. The development of India’s early LNG infrastructure unfolded amid considerable reservations. During the initial phase of the LNG terminal project, comparisons with the rapidly progressing Shell terminal generated public doubt.
Despite concerns, the sector made progress during that period, driven by coordinated leadership across institutions. The efforts of Suresh Mathur and the wider energy team, supported by the then Petroleum Minister Ram Naik, were helpful in shaping pricing structures and distribution models. With this support, we were able to initiate a very successful public issue as well. Several senior executives who had initially expressed doubts ultimately invested in the company, underscoring the industry’s growing confidence.
International partnerships, particularly with Qatar, were instrumental in securing early LNG supply arrangements that helped stabilise the [Dahej] project. The successful commissioning and subsequent expansion of the LNG terminal marked a turning point for the gas sector. Looking ahead, I think ongoing developments and global linkages with countries such as Mozambique will present an important opportunity for India’s energy sector.
Suresh Mathur
Petronet LNG today stands as the world’s eighth largest company in terms of capacity and India’s largest in terms of utilisation of its installed capacity of 22.5 million tonnes per annum (mtpa). This capacity will be expanded to 27.5 mtpa by the end of 2026. The company accounts for nearly 40 per cent of India’s total LNG consumption. The establishment of Petronet LNG marked a significant institutional milestone for gas sector. In this journey, I was involved from conceptualisation to commissioning of the project, which required navigating a series of complex challenges.
One of the most demanding tasks was securing a long-term LNG supply contract. The team successfully negotiated a 25-year agreement for 7.5 mtpa, the world’s largest single LNG contract at the time, priced at $2.52 per million British thermal unit with the first-year price frozen for the first five years. This arrangement generated substantial foreign exchange savings for the country and established a reliable foundation for India’s LNG import strategy. The contribution of senior policymakers was pivotal during this phase. Mr B.K. Chaturvedi, the then petroleum secretary, played a crucial role in steering the negotiations and finalising the contract – guidance that the project team regarded as invaluable. His involvement strengthened Petronet’s institutional credibility and helped secure the long-term structure that underpins its operations today.
The project also benefitted from strong support at the state level. During the construction of the LNG terminal, the then Chief Minister of Gujarat, Shri Narendra Modi, reviewed the project on multiple occasions and facilitated its smooth progress. The terminal was ultimately completed 18 days ahead of schedule and within cost, delivering savings of approximately $80 million.
