Chief Minister Pinarayi Vijayan’s statement in the Assembly on the proposal of laying a gas pipeline in the Kochi-Kayamkulam segment has given fresh hopes on the revival of LNG-based power generation at NTPC, Kayamkulam. The promise to find an amicable solution to the pipeline issue could be the harbinger of a new era in natural gas deployment in southern parts of Kerala.
Though the project to take natural gas to Kayamkulam from Puthuvype in Kochi through an undersea pipeline had received environmental clearance several years ago, certain fishermen’s organisations had raised objections on the ground that it would affect fishing resources. The previous governments had failed to resolve the issue, thereby stalling the prospects of NTPC, Kayamkulam, where power generation using naphtha had become unviable owing to the high cost of the feedstock.
Poll promise
The Left Democratic Front had promised in its election manifesto to resume the LNG pipeline work in the State. While the project is in progress in the Kochi-Koottanad sector, as part of the Puthuvype-Mangaluru pipeline, the proposal on extending the network to southern districts of Kerala has remained in cold storage.
Undersea pipelines
Petronet LNG limited, which set up the 5 mmtpa terminal at Puthuvype, had pointed out that undersea pipelines had been laid in various parts of the world and the fishing sector would have little reason to worry. The natural gas industry has been seeking governmental intervention to remove the fears and to give the pipeline project a new lease of life.
Rail line available
There remains an alternative as well to the undersea pipeline.
The gas could be transported to Kayamkulam through the railway line extending up to Vallarpadom. Gas could be evacuated from Puthuvype to Vallarpadom by means of barges. The private sector had evinced keen interest in the alternative, but the proposal reached nowhere in the absence of government support.
The NTPC plant at Kayamkulam had been readied to receive natural gas and had floated international bids more than a year ago to supply LNG, but it could not be proceeded with in the absence of a power purchase agreement (PPA) by the Keerala State Electricity Board. The hesitation on the part of the KSEB in thrashing out a PPA was on account of various factors, including the price of LNG.
An initiative of the government to reduce taxes on LNG would pave the way to have an affordable rate which could be a win-win situation to all the stakeholders, industry sources said.
Solar power plant
The NTPC has also proposed to set up a 170-MW solar power plant at Kayamkulam. “The proposal does not envisage storage of power in battery circuit. The power could be utilised during daytime and the power available from hydel sources could be utilised at night,” NTPC sources told The Hindu.
The NTPC has been providing solar power in Andhra Pradesh and other States under such an arrangement, these sources said.
