Economy

LNG use can lead to big savings: Minister

Richa Mishra New Delhi | Updated on August 14, 2012 Published on August 14, 2012

Liquefied natural gas may not be a substitute for crude oil, but its use for specific applications, in place of crude oil could result in substantial savings.

Responding to a question in Rajya Sabha today, the Minister of State for Petroleum and Natural Gas, R.P.N. Singh, said, “While LNG cannot be a perfect substitute of crude oil, its use for specific applications, in place of crude oil would result in savings.”

Based on the information obtained from GAIL (India) the average price of LNG from international market during fiscal 2011-12 was $ 13.22/mmBtu, the Minister said. The average price of imported crude oil (Indian basket) for the same period taking into consideration the conversion factor (1 barrel = 5.8 mmBtu) worked out to be $19.28/mmBtu.

“Hence, on the energy basis, the price of LNG was less compared to crude oil by around $ 6/mmBtu. This difference would vary from consignment to consignment,” he said.

On the steps taken by the Government to increase LNG port capacity, the Minister said, as on date the available regasification capacity in the country is 13.6 mtpa – 10 mtpa at Petronet’s Dahej terminal and 3.6 mtpa at Shell’s Hazira LNG terminal. 

The re-gasification capacity of Dahej terminal is expected to reach 15 mtpa by 2015-16 and that of Hazira to 5 mtpa by 2015-16. Petronet is also adding 5 mtpa regasificaton capacity at its upcoming Kochi terminal.

Moreover, Ratnagiri Gas Power Pvt Ltd is expected to commission its Dabhol LNG terminal by end of 2012 with an initial regasification capacity of 1.5 mtpa, which will subsequently increase to 5 mtpa. Besides, GAIL is also planning for setting p a floating storage and regasification unit on the East Coast, the Minister said.

Published on August 14, 2012
This article is closed for comments.
Please Email the Editor