With the Exxon Mobil team completing almost 65 per cent of the project, Petronet LNG Ltd, the nation's largest importer of liquefied natural gas (LNG) expects to receive first supplies from Gorgon, Australia to its Kochi terminal by 2015-16.
In 2009, Petronet LNG Ltd, had signed a 20-year deal with Exxon Mobil for purchase of 1.44 million tonnes per annum of liquefied natural gas (LNG) at a price equivalent to 14.5 per cent of the ruling oil rates.
Speaking on the sidelines of the 17th Nirma International Conference on Management (NICOM) here, AK Balyan, managing director and chief executive officer of Petronet LNG said, "We were given an update by the Exxon Mobil team (on the Gorgon project). We are about 65 per cent through. Tentative timeline is that around November-December 2014, they may be in a position to start the operations there. We can expect 2015-16 for first supplies to come to Kochi from Gorgon."
The firm, whose chairman is Vivek Rae, Secretary, Ministry of Petroleum & Natural Gas, has also awarded an order for supply of LNG from Gorgon to its Kochi LNG terminal which has a capacity of five million tonnes. "We have already given an order for our fourth ship that would carry energy from Gorgon Australia to Kochi. It is the same consortium that is doing our transportation from Qatar. They have got it by winning the bidding process. We are happy that Shipping Corporation of India would be operating it," Balyan added.
With regards to the company's Kochi terminal, Balyan said that while the terminal has a supply capacity of 18-20 million standard cubic metres per day (mscmd), the supply is restricted to only 1-2 mscmd.
"The Kochi terminal got commissioned in the month of August. But the gas supply is restricted due to lack of pipelines. Pipelines from Kochi to Mangalore and from there to Bangalore via Tamil Nadu have been delayed. The Tamil Nadu government has raised the issues in the Supreme Court after High Court ruled in favour of GAIL. We hope that in next six months this matter should be settled," he said.
Petronet LNG is also expanding its second LNG terminal at Dahej in Gujarat at an estimated cost of Rs 2950 crore by end of 2016. Recently, the Asian Development Bank (ADB) announced making a provision of USD 150 million (roughly Rs 920 crore) loan to Petronet LNG Ltd to part finance expansion of its Dahej LNG import terminal from 10 million tonne per annum Dahej terminal to 15 million tonnes.
Balyan said that the current short fall of LNG in India is over 200-250 mscmd. "India is not able to meet its gas requirement," he added.
Meanwhile, the company is in the process of setting up its third LNG terminal in Gangavaram near Vizag in Andhra Pradesh of five million tonnes per annum capacity. "We have got all approvals and sanctions by the board," Balyan stated.
