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Labour problems remain major cause of worry for Petronet LNG

Published: 03rd August 2012 08:05 AM  |   Last Updated: 03rd August 2012 08:05 AM   |  A+A-

At a time when the country is heading towards an acute power shortage, the time bound completion of Petronet LNG Ltd’s (PLL) Rs 4,200-crore five million tonne a year LNG terminal at Puthyvype island, Kerala will benefit Kerala, Tamil Nadu and Karnataka. Speaking to Pramod Thomas of TNIE, A K Balyan, Managing Director and Chief Executive Officer, PLL, said that the terminal is expected to be ready by the last quarter of this year.

Excerpts:

When will the commissioning of the LNG terminal at Puthyvype will take place?

Project activities are going on as per schedule. PLL has decided to synchronise commissioning of both the phases of the project and will be in a position to do the same by the last quarter of this year.  GAIL is making all efforts to complete pipeline connectivity so as to enable a smooth and timely commissioning of the terminal.

What are the major roadblocks faced by PLL for the timely completion of the project?

Strikes and hartals posed big time hurdles to complete the work in a time bound manner and PLL lost work for about 100 days. Besides, agitations by the local unions continue to be the major cause of worry for PLL.  The reputed technology provider/contractors/sub-contractors are reluctant to come and operate in this region. Owing to this, cost of work increased considerably.

When will the work on the power project at Puthyvype commence?

PLL has submitted a draft MoU. A detailed feasibility report on the proposed project will commence soon after signing the memorandum. Though the government has earmarked 50 acres of land adjacent to the LNG terminal, the work can be started only after the viability of the project is assessed and also after necessary clearances are obtained.

How the industries in Kerala are going to benefit through this LNG project?

The LNG terminal will increase the fuel requirement of the power plants that are not able to function due to fuel shortage.  A power plant of about 1,000 MW needs around 1.1 million metric tonne per annum( MMTPA) of LNG.  Kochi LNG Terminal is designed to handle 5 MMTPA of LNG.  Besides the  power plant, LNG can meet the demand of various industries viz fertiliser, chemical refineries, refractors, city gas etc.  PLL has also made provisions for LNG directly to those customers who are not part of the gas pipeline project.

There are objections from various quarters regarding the environmental impact of the LNG terminal. Any comments?

No. LNG is the most eco-friendly fuel and the use of LNG in industries would lead to no or minimum emissions.

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