Petronet LNG is looking out for customers for the liquefied natural gas (LNG) that it would be importing from the newly set up LNG terminal at Puthuvype in Kerala.
So far, the company managed to get only one customer – the BPCL Kochi Refinery- for the LNG. The refinery signed the gas purchase agreement with the GAIL, which is in charge of the distribution of LNG from the terminal.
The other major customers like the FACT are yet to make changes in their operating systems for switching over from Naphtha to LNG, reports suggest.
Reports indicate that the terminal would have to operate at less than 5 percent capacity if the BPCL Kochi Refinery was the sole customer. Petronet may reportedly consider this option if the other customers are not ready.
The plan was to take LNG from Puthuvype to Mangalore and Bangalore through two sets of pipelines, but the GAIL has been facing problems in land acquisition at different places.
Petronet has almost completed the Rs 4,200-crore LNG terminal which has a capacity of five million tonne a year. However, its commissioning has been delayed as most of the potential gas customers are not yet ready.
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