Petronet seeks Kerala nod for LNG terminal

Petronet LNG Ltd is seeking Kerala government's clearance for its proposed Rs 1,600 crore LNG terminal at Kochi for supplying natural gas in south India.

Managing director and chief executive officer Suresh Mathur told reporters here that discussions with the state were held last November and will resume in April.

The company, he said, will set up a subsidiary for the 2.5 million tonne project at Kochi, which might be expanded to five million tonnes, or a similar terminal might be set up at Mangalore, where Mangalore Refineries and Petrochemicals Ltd is situated.

Mathur said a pipeline will be drawn from Kochi to Mangalore and Bangalore. Petronet has bid for supplying gas to the 2,000 mw gas-based power plant at Bidadi, on the outskirts of Bangalore.

He said the Kochi subsidiary will have a 70 per cent debt and 30 per cent equity ratio (promoters are ONGC, BPCL, GAIL and IOC).

Mathur said several clearances, obtained for the project from the Kerala government, had been renewed. About the initial public offer, he said the company had opted for a 100 per cent book building route with a price band of Rs 13 to Rs 15 a share, with the issue opening on March 1.