Efforts are on to arrange LNG supply to National Thermal Power Corporation Ltd. (NTPC Ltd.), Kayamkulam.
The public sector company had floated global tenders inviting suppliers to provide 1.75 million cubic metres of gas per day. The supply was sought to be launched by the end of the year, sources said.
NTPC was considered one of the prime consumers of Petronet LNG Ltd. which had commissioned its 5 mmtpa terminal at Puthuvype here. Though the terminal was fully geared up to meet the demands of consumers, various issues relating to pricing of gas as well as connectivity had come in the way of the flow of LNG to the latter.
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FACT and BPCL Kochi were the major consumers now, but the capacity utilisation of the terminal had remained below 10 per cent in the absence of more bulk consumers, threatening the viability of the Rs.4,500-crore terminal.
Though NTPC had not entered into a pact with Petronet LNG so far, the latter could join the bidders and offer supply.
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Even if other suppliers succeeded in winning the tender, they would have to depend on the Petronet terminal in Kochi for storage of LNG, a top official of Petronet LNG told The Hindu . Gas could be supplied through barges or pipes, he said.
Two vessels carrying LNG had arrived at the Puthuvype terminal since the operations commenced a few months ago. The schedule for the third vessel would be decided soon, the official said.
NTPC had been planning massive expansion from its present generation of 350 MW. The thermal power project was intended to switch over from naptha to LNG for its fuel requirements and conversion of processing equipment to receive LNG was underway, industry sources said.
The undersea pipeline project proposed by Gail India from Puthuvype to Kayamkulam had received environmental clearance, but work was yet to begin.
Certain fishermen’s organisations had raised objections to the plan alleging probable destruction of marine life.
A pipeline network to Kayamkulam for transferring gas would enable supply of gas to various other places such as Kollam and Thiruvananthapuram as well. The Kerala Minerals and Metals Ltd., Kollam, and KSRTC were among the prospective bulk consumers of LNG.