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Mr E. Nandakumar, Executive Director, BPCL-KR, has called for bringing LNG under the purview of proposed GST and to include it in declared goods and waive or reduce customs duty to bring down the prices so that the green fuel can be used in different sectors.
Delivering the keynote address at a seminar on LNG-based industries organised by Institute of Engineers, Kochi Chapter, he said that the initiative for uniform pricing of gas, if implemented, will act as a booster for new plants, use of cleaner fossil fuel and provide level-playing field and promote competition among industries.
Mr Nandakumar stressed the need for immediate action by way of acquisition of gas assets abroad and ensuring supplies on long-term basis to the Indian market. Captive power generation will be a major segment for gas usage, he said.
He pointed out that the share of natural gas/LNG in India's primary energy mix is expected to grow from the present 9.3 per cent to 16 per cent by the year 2025. India is ideally located to receive LNG supplies from West Asian countries and enjoys transportation advantage compared to Japan, Korea and Taiwan. The increased absorption of natural gas by the user sectors such as power and fertiliser will help minimising the dependence on imported oil, he added.
Dr Sukumaran Nair, Director of Centre for Green Technology and Management, a Non-Governmental Organisation, highlighted how the commissioning of LNG Terminal at Kochi would rejuvenate the industrial development of Kerala. The project which was conceived in 1998 was dormant till the year 2007 and is now proceeding at a faster pace and is due to be commissioned in 2012.
LNG is considered as a clean and green fuel in addition to its high calorific value.
Dr Nair briefed the audience regarding the global scenario vis-a-vis LNG resources and consumption patterns. He explained how the existing industries would benefit exponentially by switching over to LNG fuel by citing the case study of the public sector FACT. FACT would turn around within a year on switching over to LNG fuel, he added.
LNG as domestic gas fuel would be cheaper and safer than the LPG stocked in cylinders at home. He cited an IIM case study which showed that the taxi drivers in New Delhi had improved their standard of living with this cost-effective fuel and this had resulted in their next generation getting better education and high-profile jobs.
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