The Petronet Dahej LNG terminal is experiencing reduced usage due to a decrease in imports, likely influenced by the ongoing conflict in West Asia, causing a significant drop in half. This has resulted in the lowest utilization of India's LNG facilities in years, as reported by both the oil ministry and industry data.

Nomura has raised concerns about margin pressures for oil marketing companies (IOCL, BPCL, HPCL) due to rising prices of ATF and LPG, along with subsidy burdens. On the other hand, Petronet LNG is expanding its capacity to 22.5 mtpa, while Reliance Industries' SEZ refinery has been exempted from windfall tax, boosting their margins.

Nomura continues to recommend buying Petronet LNG shares, forecasting a price of Rs 340. This decision is based on anticipated Service Price Adjustment (SPA) agreements, driven by factors like a 3% escalation, low regasification costs, and support from PNG. The rising demand for gas further bolsters this optimistic outlook.

Petronet LNG has successfully expanded its Dahej terminal's LNG regasification capacity from 17.5 to 22.5 million tonnes per annum (MMTPA), as of March 31st, 2026. This move aims to enhance the company's ability to handle and supply more liquefied natural gas.