The Hindu Business Line : `IOC not keen on LNG project at Krishnapatnam Port'<br>Study favours Ennore: Aiyar

THE Petroleum Minister, Mr Mani Shankar Aiyar, on Tuesday informed the Rajya Sabha that Indian Oil Corporation (IOC) is not pursuing the proposed liquefied natural gas (LNG) project at Krishnapatnam Port in Andhra Pradesh, as the port selection study undertaken found that Ennore Port in Tamil Nadu was more suitable for setting up an LNG terminal.

IndianOil had entered into an MoU with Krishnapatnam Port Company in February 2004 for the development and implementation of a project, consisting of an LNG terminal at Krishnapatnam Port along with an integrated power project and other associated facilities, if found feasible on techno-commercial considerations.

"However, the proposed LNG project at Krishnapatnam Port is not being pursued by IOC since, based on a port selection study undertaken subsequently, it was found that Ennore is a more suitable port for setting up an LNG terminal," he said.

The Minister also stressed that there was no instruction issued by the Government to IOC in this regard, as the companies on commercial considerations take such decisions.

Cooking gas connections: The public sector oil marketing companies (OMCs) have resumed the release of new liquefied petroleum gas (LPG) connections from December 1, Mr Aiyar said, when responding to a question on whether cooking gas is available in sufficient quantity in the country.

The OMCs had restricted the release of new LPG (cooking gas) connections since September 2005 because of a temporary shortage in bulk LPG availability.

"This temporary shortage of LPG emerged largely on account of non-materialisation of some additional LPG imports planned by the OMCs, shutdown of Reliance Industries Ltd's refinery from October 4 to December 1 and some unplanned shutdowns of other refineries/fractionators in the country," the Minister said.

Normal production of the RIL having resumed from December 1 and the backlog in LPG booking expected to be cleared in a couple of weeks, Mr Aiyar said that OMCs have resumed the release of new LPG connections from December 1.