Date:07/10/2004 URL: http://www.thehindubusinessline.com/2004/10/07/stories/2004100703251900.htm

Back KMML in pact for LNG supply

Our Bureau

THIRUVANANTHAPURAM: The public sector Kerala Minerals and Metals Ltd (KMML) has entered into a gas sale agreement with Gas Authority of India Ltd (GAIL) ahead of implementing its capacity expansion programme.

Announcing this here, a KMML spokesman said that the agreement is for supply of 1.77 lakh metric tonnes (MT) of liquefied natural gas (LNG) required for raising production capacity from 26,000 MT of pigment to 1 lakh MT by 2007-08. The agreement was signed in Bangalore on Monday.

With the introduction of LNG, the public sector company will not only replace costly furnace oil for fuel but also will move one step closer to setting up a captive power plant for sourcing its power requirement. Use of LNG will also translate into lower production costs for pigment, according to Mr K.P. Rajendran, Managing Director. KMML will be the first State public sector undertaking to switch to LNG for fuel, he added.