Gas to be sourced from Petronet LNG terminal in Kochi
THIRUVANANTHAPURAM: The Kerala State Industrial Development Corporation (KSIDC) signed an agreement with Gas Authority of India Ltd. (GAIL) here on Monday for developing a State-wide gas pipeline infrastructure.
The project envisages pipelines for distribution of gas from the Petronet LNG terminal, now under construction in Kochi, for industrial and other uses, including power generation and manufacture of fertilizers.
Gas will also be made available for distribution to domestic, automobile and commercial end users.
GAIL will facilitate development of a pipeline from Kochi to Mangalore and Bangalore via Kanjirakode and a sub-sea pipeline from Kochi to the NTPC thermal power plant at Kayamkulam. It is also planning gas distribution networks in various regions of the State, once the pipeline infrastructure is established. The 1,114-km Kochi-Mangalore pipeline is estimated to cost Rs.3,032 crore while the Kochi-Kayamkulam pipeline is likely to cost around Rs.1,000 crore.
The infrastructure, along with the LNG terminal in Kochi, will attract a total investment of about Rs.8,500 crore.
The LNG terminal, expected to be commissioned in 2012, will have a regasification capacity of 2.5 million tonnes a year initially.
Executive Director (Marketing) of GAIL J. Wason and Managing Director of the KSIDC Alkesh Sharma inked the agreement in the presence of Chief Minister V.S. Achuthanandan, Industries Minister Elamaram Karim, Finance Minister Thomas Isaac, Education Minister M.A. Baby, Revenue Minister K.P. Rajendran and Chairman and Managing Director of GAIL B.C. Tripathy at a function at the Secretariat.
Speaking on the occasion, the Industries Minister said while the LNG terminal and the pipeline to Mangalore would be ready by 2012, the pipeline to Kayamkulam was to be commissioned by 2013.
The KSIDC Managing Director said that the projects would be a harbinger of massive industrialisation in the State.
Industries to benefit
The availability of LNG would impact key industries in the region. Downstream industries such as FACT, NTPC’s plant at Kayamkulam, foundry and textile units in and around the State would benefit from electricity generated at a lower cost from LNG. Commercial and household transport would benefit from the use of LNG as a more economic fuel.
He said the KSIDC and GAIL would jointly prepare a techno-economic feasibility report and develop the distribution infrastructure.