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— Vipin Chandran

The Cochin Port Trust Chairman, Mr N. Ramachandran, and the Petronet LNG Director (Finance and Commercial), Mr A. Sengupta, exchanging documents after signing the concession agreement in Kochi on Thursday.

Our Bureau

Kochi, March 12 The Cochin Port Trust on Thursday signed the concession agreement with Petronet LNG Ltd (PLL) for the construction of LNG terminal and re-gasification plant within the port-based SEZ.

The Rs 4,000-crore project, coming up at 33.40 hectares at Puthuvypeen, is expected to be commissioned by 2012, and is expected to boost the revenues of the port as well as the economy of the region.

Later speaking to newspersons, Mr A. Sengupta, Director (Finance and Commercial), PLL, said that the LNG will be sourced from suppliers in Trinidad, Tobago, Qatar, Algeria, Nigeria, Australia and Indonesia. The project at Kochi involves setting up of a LNG import and re-gasification terminal of nominal capacity of 2.5 million tonnes per annum (mtpa) with a provision of expansion to five mtpa, he said.

Asked about the company’s plans to raise finance for the project, Mr Sengupta said that PLL with Rs 1,000 crore in its kitty has signed an agreement for Rs 1,400 crore from Indian consortium of banks. Besides, it will raise $300 million from a French company as well as from IFC, an arm of World Bank.

The company, Mr Sengupta said, is looking at all options with regard to fuel linkage as its responsibility is to provide gas at competitive prices. It is negotiating with suppliers with long-term and short-term sourcing from different suppliers.

He pointed out that the spot LNG prices have come down from $20-22 mtBu (million British thermal unit) during September-October to $5-5.5 now.

The terminal also opens opportunity for an integrated gas-based plant utilising LNG at Puthuvypeen producing power in most efficient manner, he added.

As part of forward integration strategy, PLL proposes to explore the feasibility of harnessing cold energy of LNG for operation of a cold storage for food and other marine export products.

The technology used by PLL for re-gasification of LNG at its Kochi terminal produces clean water by condensation of atmospheric moisture, which can be useful for industrial applications in the water starved area, he said.

The Port Chairman, Mr N. Ramachandran, said that the LNG project is expected to bring in substantial revenue to the port by way of wharfage on cargo, besides other port related charges.

The project will be one of the largest investments in Kerala and will be a turning point of Kerala’s industrial destination and State’s economic progress, he said.

More Stories on : Shipping/Ports | Alliances & Joint Ventures | Petroleum

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