The Hindu Business Line : LNG terminals should get infrastructure tag: Shell

ONE of the leading oil companies in the world, Shell on Tuesday asked the Government to accord infrastructure status for setting up LNG terminals to boost investment.

The Chairman of Shell India, Mr Vikram Singh Mehta, told newspersons that the Government should accord the infrastructure status so that more investment in the sector will pour in. He said this would reduce the dependence on oil leading to huge saving of foreign exchange for the country.

Mr Mehta said India imports 1.4 million barrels per day and consumes 2.2 million barrels per day. "It is important India shifts from oil to gas."

He said the oil sector needs a regulator so that there is a level playing field in the industry. He said the Government should review its policy on subsidy for the public sector companies. He pointed out that while the public sector companies get subsidy on each LPG cylinder they sell, the private sector gets no such incentives.

Focus on organic growth: Mr Mehta said Shell would focus on organic growth in the retail sector instead of waiting for the Government to allow the private sector to buy into public sector oil companies. He said plans to set up a refinery would depend on the success of the retailing of fuel. Currently, Shell sources its requirement of fuel from MRPL.

Shell is investing around Rs 250 crore in the first phase for setting up petrol stations across the country. It plans to set up 2,000 petrol stations, the first of which was opened in Bangalore last week.

He said Shell petrol stations would have international standards of environment protection. They will have underground tank made up of double walled fibreglass reinforced with plastic. The flexible pipeline comes with no physical joints thereby ensuring no leakages.

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