Petronet LNG Ltd wants to set up its third terminal on the country's east coast, and has zeroed in on Gangavaram Port in Andhra Pradesh for the Greenfield project.
At its 100th board meeting on Friday, in Kochi, it gave the go ahead for a detailed feasibility study by the French consultant Tracta Bel. At an estimated cost of Rs 4,500 crore, the project will have capacity of five million tonnes per annum, Mr B.C. Chaturvedi, Secretary, Petroleum Ministry, said.
He said the Kochi LNG project will be ready by July and operational by October. Gas for the terminal will be available from Gorgon, in Australia, by 2015. Till then the company plans to buy from spot markets in multiple locations.
Asked whether the gas pricing $16 per MMBTU was viable for the region, he said it would be feasible for those using furnace oil and naphtha as feedstock. “We are hopeful that Kochi terminal will also have a very good acceptance from customers,” he said, adding that work was apace on laying GAIL's pipelines to Bangalore and Mangalore.
On the Kerala government's demand for pool pricing of gas, he said, “we haven't consulted it so far and will be decided by the Government”.
Referring to the hike in petroleum prices, he said public-sector oil marketing companies lose Rs 427 crore a day due to under recoveries, and price rises, if any, will be decided by the Empowered Committee of Ministers.
Dr A.K. Balyan, Managing Director and CEO, Petronet LNG Ltd, said the Board had decided to increase Dahej Terminal's capacity by another 5 MMTPA, thanks to the big demand for natural gas and to ensure optimum utilisation of the additional jetty under construction, which will be commissioned by September 2013.
Asked about the company's proposed power project at Kochi Terminal, Dr Balyan said it would be feasible only if the State Government guarantees the purchase of power. With the rise in LNG prices, power price will rise too, he said.
Higher net profit
Announcing the results, he said during the quarter ended December 3, the company operated at 115 per cent of its capacity. The total registered volume rose to 144.93 TBTU, against 119.7 TBTU in the corresponding quarter last year. Turnover at Rs 6,330.26 crore is 74.5 per cent higher than the corresponding quarter last year. Net profit at Rs 295.38 crore is 72.9 per cent higher than in the corresponding quarter last year, thanks to improved margins and operational efficiency, he said.