Phase -2 of the Petronet LNG terminal
at Puthuvype, near here, is likely to face inordinate delay in
commissioning due to the time lag in laying pipeline in Kochi -
Bangalore and Kochi – Mangalore segments. The company has now decided to
take a cautious approach in bringing in LNG from overseas suppliers as
marketing and distribution are major concern.
Actually, the top brass of the company is completely in the dark about the commissioning of the second phase as the progress of the work on the pipe line is pathetically slow. According to A.K. Balyan, managing director of PLL, so far only 30 Kms had been completed of the total 900 Km lines passing through Kerala, Karnataka and Tamilnadu. 505 Km of the pipeline pass through Kerala, 310 Km through Tamilnadu and 85 Km through Karnataka. Resistance from land owners in Kerala and Tamilnadu has held up the work very badly.
Tamilnadu government is also opposing land acquisition and the issue is now under judicial scrutiny. Balyan said that the issue is likely to be sorted out very soon as GAIL officials are in contact with the Tamilnadu government. Once the issue is get sorted out it will not take much time to fix the pipes, say around 6-7 moths, he said.
Actually, the top brass of the company is completely in the dark about the commissioning of the second phase as the progress of the work on the pipe line is pathetically slow. According to A.K. Balyan, managing director of PLL, so far only 30 Kms had been completed of the total 900 Km lines passing through Kerala, Karnataka and Tamilnadu. 505 Km of the pipeline pass through Kerala, 310 Km through Tamilnadu and 85 Km through Karnataka. Resistance from land owners in Kerala and Tamilnadu has held up the work very badly.
Tamilnadu government is also opposing land acquisition and the issue is now under judicial scrutiny. Balyan said that the issue is likely to be sorted out very soon as GAIL officials are in contact with the Tamilnadu government. Once the issue is get sorted out it will not take much time to fix the pipes, say around 6-7 moths, he said.
GAIL is laying the pipeline from Kochi to Kootanad in Palakkad district and thereon to Bangalore and Mangalore.
Addressing a press conference here today he added that the company is
very much concerned about the slow progress on the work of the pipe line
as this affects the capacity utlilisation of the terminal. Even in
phase -1 which had a rather soft launch on Tuesday, the present capacity
utilization will be only 8-10 per cent. There are only 2 assured takers
at present, BPCL Kochi Refinery and FACT. Both the companies together
consume roughly 0.5 Million Metric Tones Per Annum [MMTPA], though the
total capacity of the terminal is 5 MMTPA.
He told Business Standard that the Kochi terminal would receive gas from Australia only by mid 2015 as the inordinate delay in fixing the pipe line warrants a restricted import. A senior officer of the company said, ‘It is just like driving a brand new car in first gear only’. Commercial supplies of regasified LNG to BPCL Kochi Refinery and FACT, will begin within a week.
Although Thumkur in Karnataka has now been got connected to Dhabol
terminal, requirement of Mangalore area would be met from Kochi
facility, Balyan said.
He said that city gas distribution project would soon be implemented
in Kochi and adjacent towns and later to extend to other cities in
Kerala. 250 cities/towns across the country have already been identified
to put under the city gas distribution programme. Phase I of the pipe
lines, involving 43 KM in Kochi had already been commissioned.
On the marketing side, talks with Travnacore Cochin Chemicals [TCC], BSES/REL, Nita Gelatin, Brahmapuram Power plant and Hindustan Organic Chemicals [HOC] is in full swing.
He also said that the formal inauguration of the green field Kochi terminal would happen sometime in September or October.
Asked about the prospects of supplying natural gas to Kerala State
Road Transport Corporation [KSRTC] he said a pilot project for supply of
compressed natural gas [CNG] for automotives to be set up in Kerala was
being finalised. Under the project, a few CNG dispensing stations will
be set up and a few hundred buses could be converted for running in the
CNG mode. The State government has taken keen interest in the project
and Petronet LNG has submitted a detailed feasibility report for
generation of power at the site adjacent to the LNG terminal as a joint
venture with the State government.
On the pricing of gas he said that the landed cost at Kochi is US $
14-15/ British Thermal Unit [BTU] and the price is varying according to
global market condition. He expected to distribute gas at a rate of US $
17/BTU to BPCL Kochi Refinery and FACT.
Post to be found at:
http://www.business-standard.com/article/companies/phase-2-of-kochi-lng-terminal-to-be-delayed-113082100287_1.html
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