Lobbies at work against LNG project?

Expert cites opposition, unhealthy competition

February 11, 2016 12:00 am | Updated 05:47 am IST - ALAPPUZHA:

Various lobbies have been working at cross purposes affecting the induction of LNG in Kerala. The lobbies are trying to stall the popularisation of natural gas in the State, an expert in the petroleum sector who has had stints in the industry told The Hindu , preferring anonymity.

The government will have to take strong decisions to take the environment-friendly natural gas ahead in the domestic and industrial segments in the State, he says.

The expert, involved in a project for transportation of LNG through cryogenic tankers, says there had been pressure on him to abandon the project. “Top officials snubbed me for taking up the project, but my sheer will to demonstrate the success of the project finally won the day,” he says. LNG is transported by means of cryogenic tankers from Kochi to Thiruvananthapuram for use at WLL Lifecare Limited, Thiruvananthapuram, now.

“Anything new is opposed; change is resisted. Each person or group involved in any new project has a separate agenda and there is a clash of interest, thwarting the very project,” he says adding the case of the NTPC unit at Kayamkulam is no different.

“Unhealthy competition among public sector units is another reason for the slow progress of various projects. IOCL, GAIL India, and ONGC are all involved in various projects in petroleum sector. There have been several instances in which clash of interest have taken place among these giants.”

“Petroleum and automobile lobbies are bound to oppose the place that LNG could gain in the energy scenario. They tend to exert influence on centres of authority to ensure protection of self-interests.” The solar lobby has strengthened, which could adversely affect the induction of LNG. Solar energy projects had faced a similar opposition in the initial stages.

The pricing formula of LNG, linked to petroleum products, is one of the major handicaps for the product’s acceptance in new industrial zones. The pricing is done in a complex way and it needs an overhaul to make it more rational, he said.

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