Petronet LNG is said to be holding early stage discussion with the Andaman and Nicobar administration for setting up its first liquefied natural gas (LNG) terminal
outside mainland India.
The proposed mini-LNG terminal, which may cost about Rs 600 crore, may have an initial capacity of slightly over 0.5 million tonnes (mn t) and this would primarily take care of domestic use within the islands. .
The company would soon carry out the feasibility study for the mini-terminal, which would be connected to its upcoming terminals in Kochi and Gangavaram; the gas would be transported using small barges, Rajender Singh, director (technical) of the state-run firm said.
Meanwhile, by mid-July, the company is likely to commission the Kochi terminal and operate it only at 12 per cent capacity in 2013-14 owing to pipeline constraints.
GAIL has planned two major pipeline projects to connect Bangalore and Mangalore to the Kochi terminal. The 310-km Kochi-Bangalore pipeline was facing rough weather, owing to land acquisition issues in Tamil Nadu.
The country’s largest importer of LNG is also in the process of expanding the capacity its Dahej terminal from 10 mn t to 15 mn t.
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