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HLL Lifecare will be first ‘direct’ customer for Petronet gas in Kerala

Our Bureau Thiruvananthapuram | Updated on May 27, 2013 Published on May 27, 2013

The agreement is for supply of gas by road tankers with trade name ‘Taral Gas’ from Petronet’s terminal at Kochi to the Hindustan Lifecare plant in Thiruvananthapuram from January.

Petronet LNG has signed a gas sales and purchase agreement with contraceptive and medical devices major HLL Lifecare here on Monday.

It commits Petronet to maintaining a daily supply of eight tonnes of liquefied natural gas (LNG) to the mini-ratna company for five years, an official spokesman said.

ROAD TANKERS

A.K. Balyan, Managing Director and Chief Executive, Petronet LNG, and M. Ayyappan, Chairman and Managing Director of HLL Lifecare, signed the agreement in the presence of Chief Minister Oommen Chandy.

Also present on the occasion were Aryadan Mohammed, Minister for Power and Transport; E.K. Bharat Bhushan, Chief Secretary, and other dignitaries.

The agreement is for supply of gas by road tankers with trade name ‘Taral Gas’ from Petronet’s terminal at Kochi to the Hindustan Lifecare plant in Thiruvananthapuram from January.

New technology now offers a choice to customers between pipeline supplies and supply by road tankers.

FIRST CUSTOMER

The latter helps those who are not in the vicinity of the pipeline or where pipeline doesn’t justify economics or is impractical due to low volumes, difficult terrains and other reasons.

The agreement is the first of its kind in Kerala. HLL Lifecare is the first organisation to enjoy the benefits of direct supplies of LNG and is the first direct customer of Petronet LNG in the State.

HLL will set up a small storage tank and re-gassing facility in their premises to receive, store and vapourise LNG into natural gas. Petronet LNG shall arrange for its loading and transportation.

JOINT VENTURE

This mode establishes a faster and easier availability of LNG to areas not connected by pipelines and is expected to pave way for more equitable distribution of gas in the State.

Petronet is a joint venture company set up at the initiative of Government of India and public sector oil and majors such as Indian Oil, Oil and Natural gas Corporation, Bharat Petroleum, and GAIL India.

Petronet currently operates a 10-mmtpa terminal at Dahej, Gujarat. The second terminal at Kochi is expected to get commissioned by July 2013 for supplies of re-gassifed LNG through pipelines.

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Published on May 27, 2013
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