The Union Ministry of Environment and Forests has sanctioned the proposal of Petronet LNG Limited (PLL) to enhance the re-gasification capacity of its LNG project at Puthuvype in Kochi from 2.5 MMTPA (million metric tonne per annum) to 5 MMTPA.
The Expert Appraisal Committee of the Ministry had examined an environment impact assessment report submitted by the company before giving the nod, top PLL officials told The Hindu on Friday.
The Ministry had earlier given its approval for setting up a dedicated LNG jetty and two storage tanks on the Puthuvype island. About 95 per cent of the work on the two storage tanks has been completed. The project is expected to go on stream by the end of 2012, officials said.
PLL had initially decided to install equipment for a 2.5-MMTPA terminal here and got the necessary approval. Realising the market potential, PLL then decided to double the capacity and carried out necessary studies on the design of the facilities for 5 MMTPA and the request was submitted a few months back. In fact, PLL had adopted a modular approach for the re-gasification facilities, where provisions had been kept to install equipment at a later stage to increase the capacity to 5 MMTPA. Now PLL decided to install equipment for 5 MMTPA re-gasification capacity, along with the present construction, based on the prevailing situation in the energy sector. The company's decision was based on the fact that the growing energy requirements and lack of a matching increase in domestic supplies would result in further dependence on import of gas in the coming years.
The expert panel observed that the quantitative risk analysis for the facilities for the 5-MMTPA terminal has already been conducted and there is no change envisaged in the environment impact associated with the addition of equipment. A public hearing was conducted as part of the process for getting approval of the Ministry.
The company has entered into LNG supply contracts with RasGas, Qatar, and Exxon Mobil, Australia. It has also signed gas sales agreements with GAIL (India) Ltd., IOCL, and BPCL, apart from making pacts with bulk-end consumers in the power, refineries, and fertilizer sectors.
Two storage tanks at the Kochi terminal are being constructed by IHI, Japan, while the re-gasification facilities are being constructed by CTCI, Taiwan. The marine facilities are being set up by Afcons Infrastructure Limited.
Formed as a joint venture by the Government of India to import LNG and to set up LNG terminals in the country, the company's business involves leading oil and natural gas industry players. The promoters of the company include GAIL (India) Limited, Oil and Natural Gas Corporation Limited, Indian Oil Corporation Limited (IOCL), and Bharat Petroleum Corporation Limited (BPCL). PLL is operating the Dahej LNG terminal in Gujarat.
