Petronet LNG Ltd (PLL) today informed that the supplies of liquefied natural gas (LNG) from the Australian Gorgon LNG Project will begin from 2015-16.

The company had signed a 20-year long term sales and purchase agreement (SPA) with an Australian subsidiary of Exxon Mobil Corporation in August 2009 to purchase approximately 1.5 million tonnes per annum (MTPA) of LNG from the Gorgon LNG Project.

“As per the update given by Exxon Mobil team the project is progressing on schedule and they are about 65% through. In the November-December this year, they may begin operations. So we can expect that by 2015-16, we will be able to get our first supplies from there to our Kochi terminal,” said A K Balyan, MD & CEO, Petronet LNG Ltd.

“We have already ordered for construction of a fourth ship that would carry the LNG from Australia to India. It is the same consortium which is doing our transportation from Qatar and Shipping Corporation of India would be operating it,” he said.

Last week, the Prime Minister Dr Manmohan Singh dedicated to the nation PLL’s LNG terminal at Puthuvype, Kochi. However, the terminal, despite having the capacity to supply up to 18-20 million metric standard cubic meters per day (mmscmd) it is presently operating at 5% of the capacity supplying only 1 mmscmd.

“Supplies are restricted because of the lack of pipeline infrastructure from Kochi. The terminal is operating at about 5-6% capacity. It is very disappointing,” Balyan said.

Balyan also expressed hopes that work on the pipeline from Kochi to Mangalore and from there to Bangalore via Tamil Nadu will start in next few months. “There was some litigation for the pipeline. The matter was in High Court, but later the court had ordered GAIL to start laying down the pipelines. However, the Tamil Nadu government has challenged it in the Supreme Court. But hopefully in a period of next 6-8 months this issue would be settled,” he said.

rutam.vora@thehindu.co.in

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