Union Petroleum Minister M Veerappa Moily informed that state-run oil firms ONGC and Bharat Petroleum Corp (BPCL) would enter into a memorandum of understanding (MoU) for setting up a Liquefied Natural Gas (LNG) terminal at Mangalore.
The MoU would be signed in the next 15 days, the minister said after commissioning a Rs 4,500-crore pipeline from Dabhol LNG terminal to Bangalore set up by GAIL.
It is learnt that ONGC plans revive the (LNG) import terminal project near its Mangalore refinery in Karnataka, which was put in the back burners some six years ago.
Acute shortage of natural gas in the country underlines the need to set up LNG terminal for importing the fuel and meeting domestic demand.
Meanwhile, it is learnt that the Dabhol-Bengaluru pipeline of GAIL has a capacity to carry 16 million standard cubic meters of gas per day and already 73 km has been laid in Bengaluru city.
The 1,000 kilmometre pipeline will help the state power generation utility save Rs 800 crore annually by reducing cost, improving efficiency and drastically cutting down pollution caused by using liquid fuels.
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