Import of LNG to ease oil crisis

In a move to overcome th
15 January 2001

Mr. Ram Naik, minister for petroleum and natural gas, revealed this last week while inaugurating the commencement of laying a gas pipeline network in Mulund, a north-east suburb of Mumbai.

He said Petronet, a joint venture company promoted by public sector units (PSU) in the oil industry, is establishing LNG terminals at two points in the country - at Dahej in Gujarat and Kochi in Kerala. Mr. Naik said the gas would be brought to India in a liquid form by sea tankers.

Petronet, he said, had also signed a long-term sale-purchase agreement with Rasgas in Qatar for the purchase of 7.5 million tons per annum of LNG for a period of 25 years.

According to Mr. Naik, the engineering, procurement and construction (EPC) contract in respect of the Dahej terminal has already been awarded and LNG supplies are expected to begin by December 2003. Supplies at Kochi are scheduled to begin by 2004.

He said that Gas Authority of India Limied (GAIL), in association with Totalfina of France and Tata Electric Company, was also making efforts to import LNG at the latter’s plant at Trombay in Mumbai.

GAIL has also signed a ‘gas co-operation’ agreement with the government of Maharashtra in October 2000 with the objective of taking up joint studies on medium and long-term potential of utilisation of natural gas in the state. The planned study would also focus on the requirement of gas pipeline infrastructure. The comprehensive study would then enable further planning and eventually lead to the opening up of new avenues for industrial development in Maharashtra, Mr. Naik said.