With only a fraction of large industrial consumers signing up, the Petronet LNG Ltd’s (PLL) terminal at Puthuvype is likely to be delayed further.
There were reports that the terminal, with a capacity to handle 5 Million Metric Tonnes Per Annum (MMTPA) of Liquified Natural Gas (LNG) upon completion, will be commissioned by July this year. The major reason for the delay, according to sources, is the fact that no large industry except BPCL Kochi Refinery in Kerala has inked final agreements for purchasing the gas.
Gas Authority of India (GAIL), which is responsible for laying the pipeline to supply gas, has entered into agreements with three companies - Kochi Refinery, Hindustan Organic Chemicals Limited and Nitta Gelatin India Limited - so far. Though the LNG-receiving facility in FACT will be ready by May 15, the company is yet to sign an agreement to get the gas.
The liquefied natural gas (LNG) storage and re-gasification terminal is being constructed with the aim to meet increasing natural gas demand from power, fertilizer, petrochemicals and various other industries in southern states.
According to Petronet LNG officials, Kochi is currently connected by a single pipeline. The customers here are few and the volumes are going to be low. The volumes are likely to increase when the Kochi terminal will be connected to pipelines in two other states.
It is learnt that the Petronet may commission the terminal with very low capacity in order to save the face as the commissioning is experiencing delays.
“As LNG is a very sensitive fuel it has to be supplied soon. Hence bulk purchasing customers have to be there in order to commission the terminal. As of now there are only very few customers who require huge amount of LNG. The gas infrastructure in the entire state has to be ready to ensure the free flow of LNG from the terminal,” a Petronet LNG official said.
K P Ramesh, Deputy General Manager, GAIL (India) Limited said that in all likelihood the commissioning of the terminal will be delayed as the pipelaying is progressing at a snail’s pace.
