Kochi project hinges on LNG sale

The Kochi project of Petronet LNG Limited (PLL) will be implemented only if the company is assured of selling at least 60 per cent of its proposed import of liquefied natural gas (LNG).

PLL, a joint venture company promoted by GAIL (India) Limited, Oil and Natural Gas Corporation, Bharat Petroleum Corporation and Indian Oil Corporation, had decided to put up a 2.5 million tonnes per annum (mmtpa) LNG terminal at Kochi.

Answering a question in the Rajya Sabha today, petroleum minister Mani Shankar Aiyar said in a statement that the Kochi terminal was conceived in view of the proposed expansion of Kayamkulam power plant of the National Thermal Power Corporation (NTPC).

Land for the project was allotted at Puthuvypeen Island. PLL completed pre-project engineering activities and obtained necessary clearances and approvals from concerned departments.

"However, National Thermal Power Corporation has gone for international competitive bidding for procurement of natural gas and LNG for the proposed expansion of Kayamkulam project from 350 mw to 2300 mw," the minister said.

While PLL has submitted its bid, it will take steps to execute the project of either its bid is accepted by NTPC or alternative marketing tie-ups for at least 60 per cent of the proposed terminal capacity is achieved, the minister said.