STOCK MARKET BSE NSE

Package Could Revive PLL's Terminal

If the revival package for the FACT is cleared by the Union Government it would also  be a relief indirectly for the Petronet LNG Limited (PLL) Puthyuvype terminal, which registered losses in the first year of commissioning, points out leaders of the Save FACT Action Committee.

Published: 07th May 2014 09:13 AM  |   Last Updated: 07th May 2014 09:13 AM   |  A+A-

If the revival package for the FACT is cleared by the Union Government it would also  be a relief indirectly for the Petronet LNG Limited (PLL) Puthyuvype terminal, which registered losses in the first year of commissioning, points out leaders of the Save FACT Action Committee.

FACT and BPCL Kochi Refinery are the two major  industrial units that need gas for operating their plants.

“If the package is cleared, FACT will be able to stabilise its financial position. Along with this, if gas subsidy is also granted,  FACT can procure gas from LNG Terminal,” said a leader of the Action Committee. FACT had switched over to LNG from Naphtha in last September as LNG was cheaper for making Ammonia. But the fertiliser company later stopped procuring gas owing to thee high price quoted by the supplier.

The company decided to import Ammonia  as it was cheaper for the company instead of producing internally using high priced LNG.

PLL first supplied gas at a price of $19.5/MMBTU, later in the second shipment the price was hiked to $21.5. The PLL then demanded `24.35 which which was not a viable option.

PLL, the largest importer of gas,  has recently reported a 31 per cent drop in fourth-quarter net profit, mostly due to very low capacity utilisation at Puthuvype Terminal. The 5 million ton Kochi terminal is being operated at 1 per cent of capacity in the absence of pipelines to take gas to customers in Mangalore and Bangalore.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp