The Hindu Business Line : Centre's green light for Kochi LNG terminal

THE long-awaited LNG terminal at Kochi, which was to be set up by Petronet LNG Ltd (PLL) along with the Dahej project about five years ago, will now become a reality, as the Union Petroleum and Natural Gas Ministry has approved the project in principle.

The Centre has approved the PLL terminal in principle and the company's board would take the final decision at its meeting scheduled for October 29 in New Delhi, Mr S. C. Mathur, Chairman and Managing Director, PLL, told a group of journalists who were on a visit to the Dahej terminal.

It has become almost certain that there would be sufficient market for the 2.5-million tonne per annum (MTPA) liquefied natural gas (LNG) from the Kochi terminal and hence, PLL would go ahead with the project early next year, he said. The terminal will be a replica of the Dahej terminal.

The company had selected the Ras Laffan Liquefied Natural Gas Company Ltd, (RasGas) Qatar as the LNG supplier for 2.5 MTPA to the LNG terminal in Kochi. Besides, he said, Gas Authority of India Limited (GAIL) would transport the re-gasified gas from Kochi.

The Centre approved the formation of PLL for setting up the LNG terminals in the country with ONGC, IOC, BPCL, GAIL, LNG Supplier, the strategic partner and the public as promoters, with an authorised capital of Rs 1,200 crore. It was incorporated on April 2, 1998.

The implementation of the project has been pending for about five years for want of an assured market and despite the fact that PLL had obtained all required approvals/clearances from the relevant Government authorities/ agencies and spent around Rs 32 crore on pre-project activities.

GAIL will complete the laying of the pipeline from Kochi to Mangalore and Bangalore in one year, once PLL commences the work on its terminal here, they said. The total cost would come to around Rs 2,000 crore, GAIL sources said.

The market study conducted by the GAIL earlier and the FACT Engineering and Design Organisation (FEDO) had recently shown an adequate market for the gas from Kochi, they added.

More Stories on : Petroleum | Infrastructure | Shipping | Kerala

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page