Date:26/05/2005 URL: http://www.thehindubusinessline.com/2005/05/26/stories/2005052600520700.htm

Back Petronet LNG pre-qualifies four foreign cos for Kochi terminal

G.K. Nair

Kochi , May 25

THE Petronet LNG Ltd (PLL) board at its meeting held on Tuesday pre-qualified four foreign companies as EPC contractors for setting up the 2.5 million tonne per annum (mtpa) LNG terminal at Kochi.

The companies pre-qualified are IHI Consortium, Japan, Technigas, France, Sofregaz, France/Italy and Tractebel of Belgium, Mr Sham Sunder, Director (Technical), PLL, told Business Line on Wednesday. One of the four companies, which would meet all the requirements, would be selected; the entire process is expected to take at least nine months before the EPC contract is awarded, he said.

Now, the company would take up marine-related studies at the Puthuvypeen island, where the terminal would be set up.

Besides, the company is looking for a suitable party to prepare the basic designs, he said.

Discussions would take place on Friday with the Cochin Port Trust authorities on the formal handing over of 35 hectares of its land, he said.

After taking over the land, some of the civil works, such as land filling and construction of boundary walls, would start in few months, he said.

Initially, the terminal would have a capacity of 2.5 (mtpa). However, it would be enhanced to 5 mtpa depending on the demand for the gas.

According to him, GAIL (India) Ltd is in negotiations with NTPC for supplying gas to the latter's Kayamkulam Thermal Power plant, which is expanding its capacity by 1,950 MW from the present 350 MW in the next Plan.

If the negotiations succeeded, PLL may think of setting up the 5 mtpa terminal, he said.

PLL was formed by the Government of India to import LNG and set up LNG terminals. It is a joint venture promoted by GAIL, Oil and Natural Gas Corporation , Indian Oil Corporation and Bharat Petroleum Corporation with an authorised capital of Rs 1,200 crore.

The company has selected GAZ de France (GDF), a French National Gas Company, as its strategic partner.

It has also signed LNG sale and purchase agreement with Ras Laffan Liquefied Natural Gas Company Ltd., Qatar, for the supply of LNG to India.

PLL has set up its first LNG terminal at Dahej in Gujarat with the capacity of 5 mtpa, which is also being expanded to 7.5 mtpa.