After a few years of dormancy, LNG (liquefied natural gas) is poised to play a more vibrant role in the emerging energy scenario in Kerala. The environment-friendly gas is to be used to fuel new buses to be acquired by the Kerala State Road Transport Corporation (KSRTC). Nine LNG/CNG (compressed natural gas) filling stations will be set up across Kerala as part of the project. Public sector oil companies will establish the stations for which the tendering process has started.
While the project to launch LNG-run buses is part of modernisation of the KSRTC fleet with the help of financing agencies, it will help Petronet LNG Ltd., the supplier of LNG, to improve its capacity utilisation. An LNG driven bus was launched in Thiruvananthapuram a year ago, as part of a demonstration project.
The LNG terminal at Puthuvype in Kochi has been struggling to improve its offtake of gas. The capacity utilisation, which had remained below 10 per cent in the initial years of operation, has reached 16 to 17 per cent now, though it is far from reaching a viable stage, a top official of Petronet LNG told The Hindu . The terminal receives gas from overseas companies regularly as part of its agreement with the international suppliers, but the company has been forced to sell part of its capacity to external operators as part of its self-sustenance strategy in the absence of required support from domestic players.
The project to transport gas to Mangaluru through pipelines is making considerable progress, boosting the confidence of players in the LNG arena. The State government is providing full support to the Gail India project, which is scheduled for completion by next year-end. The pipeline project, originally conceptualised to take gas to Bangalore, along with Mangaluru, through a separate pipeline branching out at Koottanad, is expected to be taken up in the next phase.
An LNG kit for domestic use of the gas as cooking fuel has undergone successful tests and is awaiting government approval, a senior official in the gas-based industry said. If the project gets government nod, cylinders containing LNG could be supplied to homes. A cylinder of LNG could last several times longer than LPG of the same volume, according to him.
The City gas project, being executed by IOC-Adani joint venture, intended to transport PNG (piped natural gas) to residential areas, is moving at a slow pace in Kochi. The gas supply to NTPC Kayamkulam, one of the bulk buyers, has not started though the plant is ready to receive gas. The project for power generation by using RLNG (regasified LNG) as fuel has not taken off in the absence of a power purchase agreement with KSEB.
Minister for Electricity M.M. Mani had visited the Kayamkulam plant recently, giving rise to speculations on the planned natural gas-based power project, especially in the wake of opposition from various quarters to the proposal on the Athirapilly hydel project.
