Petronet LNG’s Kochi terminal will go on stream in January 2013, the company’s Managing Director and CEO, Dr A K Balyan, told Business Line today. However, the terminal will operate only to less than a fifth of its capacity, because the off-take infrastructure is not yet ready.
What will soon be ready is a 50 km pipeline that will deliver gas to industrial customers in the neighbourhood of Kochi—such as Kochi Refineries and FACT, the fertiliser manufacturer.
The major pipelines (being laid by GAIL)—one connecting the Kochi terminal to Bangalore and the other to Mangalore - are likely to be ready only by December 2013. At that stage, the Kochi terminal will be able to achieve over 80 per cent utilisation, Dr Balyan said.
HPCL to take stake in Gangavaram
Petronet LNG is also gearing itself up to build another LNG importation, storage and regassification terminal at the eastern port of Gangavaram, Andhra Pradesh.
Dr Balyan said that as the project awaits environmental clearance, Petronet LNG is going ahead with “pre-award” activities, so that the moment the clearance is secured, the award of various contracts could be done.
The Gangavaram terminal is being put up under a separate company, in which the Gangavaram Port and the public sector oil refiner, Hindustan Petroleum Corporation Ltd will be shareholders.
There have been reports that the Gangavaram project would have a “strategic partner” too. Asked about this, Dr Balyan said that the issue of getting on board a strategic partner has not yet been closed.