The liquefied natural gas (LNG) terminal of Petronet LNG
Limited, which commenced operations with the offloading of gas at
Puthuvype here in August last, will be officially inaugurated later this
month.
Prime Minister Manmohan Singh would announce the launch of the project on December 21 at a function here, company sources said.
The
commissioning of the terminal gave shape to a dream project but its
capacity utilisation remains low. With FACT and BPCL Kochi being the
only two major consumers now, the capacity utilisation remains below 10
per cent. After the first vessel from Qatar carrying 1,23,000 cubic
meters of gas offloaded it in August-September, the second vessel with
1,38,000 cubic meters of liquefied gas reached the terminal a fortnight
ago.
Lower capacity utilization would mean higher
operational costs, affecting the viability of the project. However, the
project is certain to find more patrons in long-term as the awareness on
the clean fuel is spreading. More bulk industrial users are expected to
join the list of LNG consumers. Domestic supply is also tipped to be
launched in Kochi. Petroleum & Natural Gas Regulatory Board has
already begun procedures for inviting tenders for supply of gas to
domestic consumers under the city gas project in Ernakulam district.
KMML,
Kollam, a public sector unit, is planning to use natural gas for its
fuel needs. HLL unit in Thiruvananthapuram is also in the gas
beneficiary list. KSRTC and NTPC Kayamkulam are among the other
prospective customers though final decision is yet to be taken by the
two.
According to the projections by Petronet LNG
Limited, the city gas demand is to go up from 15 mmscmd in 2012-13 to 36
mmscmd by 2019-20. Power sector’s dependence on gas will go up from 86
to 202 mmscmd during the period while fertilizer manufacturers’ need for
gas will increase from 60 to 106 mmscmd during the same period.
The
pipeline laying work in Kerala, taken up by Gail India, is progressing
at a slow pace. The project for laying pipelines in Tamil Nadu has hit a
road block with the government there opposing the plan for laying it
through farm fields. Though the Madras High Court has ruled in favour of
Gail in a case filed by farmers’ organisations, the Tamil Nadu
government is said to be keen on approaching the Supreme Court.
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