Petronet LNG Limited on Tuesday said it would start commercial operations of 5 million tonnes per annum terminal in Kochi by July. However, the terminal would operate at just 15 per cent capacity because the pipeline network to evacuate gas is yet to be laid.
“Kochi terminal has a problem of pipeline connectivity. The phase-II of connectivity that was suppose to come in October last year is delayed because of problems in Kerala and Tamil Nadu. The 44 km stretch is complete,” A K Balyan, Managing Director and CEO of the company told media persons.
Balyan explained that once the Kochi-Mangalore and Kochi-Bangalore pipelines come up, the capacity addition would go up remarkably, to the order of 75 per cent. “Terminals would need better pipeline connectivity. If gas business has to grow emphasis has to be on pipeline connectivity.”
Petronet targets to import four-five spot cargoes to its Kochi terminal in 2013-14. The terminal would start getting gas from Gorgon project in Western Australia on long-term agreement starting 2015.
Speaking on imported gas prices, R K Garg Director (Finance) said that it went up to $18-19/mBtu during January-March. This was because of higher demand during winter and countries such as Brazil and Argentina, among others consuming more gas.
“Now, spot prices are hovering around $14/mBtu,” Garg said.
MUNDRA TERMINAL
Petronet has submitted an expression of interest to pick up 25 per cent equity stake in terminal at Mundra in Gujarat.
“We are not aware of details of the project. It is subject to due –diligence. We would like to synergy in such projects. We need to know the business model and how it is implemented,” Balyan said.
Gujarat State Petroleum Corporation Ltd (GSPC) had invited companies to pick up stake in the Rs 5,000 crore project. GSPC holds 50 per cent stake in it.
According to reports, RIL-BP, Torrent Power and GAIL (India) have also submitted their expression of interest.
DIVIDEND
Petronet has announced 25 per cent dividend for 2012-13. This translates to Rs 2.50 per equity share of Rs 10 each.
In addition, the company has initiated the process to further expand the capacity of Dahej terminal to 15 million tonnes a year. “The contracts would be awarded around September-October,” Balyan said.