G.K. Nair

Kochi , Oct. 31

PETRONET LNG Ltd will start the preparatory work next month for setting up its LNG terminal here, which has been pending for about five years, following final approval of the project by its board of directors on Friday.

Speaking to Business Line from New Delhi, Mr S.C. Mathur, Chairman and Managing Director, said on Saturday that the company wanted to commence work on the project at a faster pace and, hence, it will be calling for EPC tenders for short-listing qualified contractors soon. It will also be initiating the process for financial closure next month for the Rs 1,600-crore project. "We will have LNG from both RasGas, Qatar and other sources for the 2.5 million tonne per annum terminal," he said.

According to the SPA signed long ago with RasGas, supply of LNG to Kochi would be obligatory only after development and implementation of the terminal.

When asked about the marketing of the gas from the terminal, Mr Mathur said that the issue would be discussed with the offtakers. GAIL, BPCL and IOC, which would be marketing it, had already signed agreements/MoUs with potential users, he said. However, "the proportion may be different" from that of Dahej terminal in Gujarat, he said. GAIL is marketing at present 60 per cent of the gas from this terminal, while IOC 30 per cent and BPCL 10 per cent.

The terminal will come up on 40 hectares of land allotted by the Cochin Port Trust at nearby Puthuvypeen. He said that all the pre-project activities involving an investment of Rs 32 crore had been completed long ago.

For setting up LNG terminal in the country the Centre had approved the formation of PLL in July 1997 with equity participation from ONGC, IOC, BPCL and GAIL (India) at an authorised capital of Rs 1,200 crore.

Mr Mathur said that the terminal here would have all the latest facilities that are available at its facility in Dahej.

© Copyright 2000 - 2009 The Hindu Business Line