India's Petronet has risks to weigh before closing Driftwood LNG deal

摘要

A potential deal by Petronet to pump in a few billion dollars to buy equity in the US Driftwood project in exchange for lifting 5 million mt/ year of LNG over the longer term may take India a step closer to its gas ambitions, but the state-run importer will have to weigh the risks carefully, analysts said. Indian stock market investors have reacted cautiously to the nonbinding agreement, with share prices of Petronet falling sharply earlier in the week as investors wait for more clarity. But some analysts said that options for Indian firms to take the equity route could be rewarding over the longer term given the potential to boost domestic gas production was limited.