Industry & Economy
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Petroleum
GAIL may share Kochi LNG terminal capacity
Mony K. Mathew
Thiruvananthapuram
,
March 18
GAS Authority of India Ltd (GAIL) may share the enhanced capacity of the LNG terminal being set up in Kochi by Petronet for supplying gas to the Kayamkulam station of National Thermal Power Corporation (NTPC).
GAIL and NTPC had entered into an alliance for importing gas for the Kayamkulam plant. Though there was a proposal to set up an LNG terminal and a re-gasification facility at Kayamkulam for the purpose, the Union Petroleum Ministry had denied permission to GAIL for it.
NTPC had decided to source its own gas for the Kayamkulam project as it felt that the price of Petronet gas was on the higher side. Petronet, on its part, had identified the customers for the gas from the Kochi terminal, which was originally planned to have a capacity of 2.5 million tonnes. It has now decided to enhance the capacity to five million tonnes and the spare capacity thus created may be earmarked for the GAIL-NTPC combine, of course for a price, according to sources here.
Also, GAIL can use the gas being supplied to NTPC for extraction of heavy gas to be used at its proposed petrochemical complex.
Meanwhile, the petrochemical complex featuring a gas cracker is likely to come up in 500 acres of land belonging to Fertilisers and Chemicals Travancore Ltd near Kochi. This is found to be more viable than taking the gas all the way through a pipeline to Kasargod where the complex was originally planned to be established.
The feasibility study by Engineers India Ltd in respect of the complex is already on and the report is expected to be submitted in a couple of months, the sources said.
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