The Hindu Business Line : ‘Concession pact for Kochi LNG terminal by month-end’

The company has already identified Chevron-operated Gorgon project in Western Australia for importing 2.5 mt LNG for 25 years at the Kochi terminal.

Pratim Ranjan Bose

Kolkata, Sept. 11 Petronet LNG is waiting for the Cochin Port Trust and the Union Shipping Ministry to enter into firm concession agreement to start implementation of the proposed LNG terminal. According to the company, the Centre has now promised September 30 deadline for entering the concession pact.

“The project work will not start till the concession agreement is in place,” the Petronet Managing Director and CEO, Mr Prasad Dasgupta, told Business Line. “The draft concession agreement is already frozen. We are now waiting only for the formal agreement,” Mr Dasgupta said, adding that the company has already shortlisted the EPC contractor and the project would be awarded immediately.

It may be mentioned that the Japan-based Ishikawajima-Harima Heavy Industries was the sole bidder for the engineering, procurement and construction (EPC) contract for the Rs 2,500-crore terminal.

The terminal will have an initial capacity of 2.5 mt to be expanded to 5 mt in the long run. The capacity is considered adequate to cater to the existing demand in the southern States of Kerala and Tamil Nadu.

The terminal will be the fourth such project to be set up in the country and is the first one to be set up in a major port.

India, currently, has three LNG terminals, including Petronet and Shell terminals in Gujarat and Dabhol terminal of Ratnagiri Power in Maharashtra.

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