Financial Daily from THE HINDU group of publications
Tuesday, Aug 03, 2004
Financial Daily from THE HINDU group of publications Tuesday, Aug 03, 2004 |
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Corporate
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Alliances & Joint Ventures KRL keen to take part in LNG terminal project G.K. Nair
Kochi , Aug 2 KOCHI Refineries Ltd (KRL) seems to be keen on participatingin the LNG terminal project here, irrespective of who sets it up. The fate of the proposed terminal to be set up by Petronet LNG Ltd (PLL) hangs in balance for want of tie-ups for 60 per cent of its capacity of 2.5 million tonne a year. "We have been examining the issue and prepared to take a number of different positions," Mr B.K. Menon, Managing Director, KRL told Business Line. He said that recent market studies have revealed that there are enough buyers here and in Coimbatore and Salem, who could absorb about 60 to 70 per cent of the capacity of the 2.5-million-tonne terminal. Hence, the major impediment now is the `pricing' of LNG. The question is whether the company setting up the terminal would supply gas at a price acceptable/affordable to the prospective buyers, he said. "We could become a customer of LNG even if PLL sets up the terminal besides being a partner in marketing its product," he said. He said KRL is planning to diversify into power generation following the introduction of the Electricity Bill 2003, by reviving its old proposal to set up a 500 MW power plant. Originally it was planned to use vacuum residue as fuel from its refinery. Since it would be costlier, the company now plans to use LNG, he said. KRL has already engaged Crisil to conduct a study and comeback with a preliminary report that is expected by September-end, he said.
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