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Our Bureau

Thiruvananthapuram , Aug. 18

PETRONET LNG Ltd has sought the State Government's support for the proposed LNG terminal in Kochi.

A team of officials from Petronet, headed by the Chairman and Managing Director, Mr Suresh Mathur, met the Chief Minister, Mr A.K. Antony, here on Wednesday and asked for certain concessions from the Government to ensure the viability of the project.

According to sources, Petronet officials wanted the State Government to reduce the sales tax on the gas to be supplied in the State so as to keep the price of the gas affordable for the consumers.

For the same reason, the company is also looking forward to a reduction in the customs duty on LNG import. In this respect, it has sought the support of the State Government to take up the matter with the Centre, the sources said.

Petronet LNG has proposed the establishment of a 2.5-million-tonne LNG terminal at Puthuvypeen near Kochi and it has already spent more than Rs 30 crore on pre-project activities. The project has been in the pipeline for more than six years.

One of the reasons for the delay was doubt over the availability of enough consumers for the gas in the State. The prospective consumers, in turn, were unwilling to commit themselves for want of a clear picture on the pricing of the gas.

However, a recent study by FACT Engineering and Design Organisation (FEDO), commissioned by the Kerala State Industrial Development Corporation (KSIDC), has found that there were enough consumers for the gas in the State, excluding the gas requirement of the proposed expansion of NTPC's Kayamkulam power station.

GAIL (India) Ltd, which will supply the gas from the terminal, has already entered into agreements with a slew of companies for gas offtake.

More Stories on : Petroleum | Kerala

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