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Ready to waive Regulatory Route for Gas Project: Moily

<p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The proposed city gas distribution network project in Ernakulam district received a major boost on Saturday with the minister for petroleum and natural gas M Veerappa Moily announcing willingness to walk the extra mile to make it a reality.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">&quot;I&#39;m ready to invoke the powers vested in me to waive the regulatory conditions so that the project would become a reality soon. Once the project becomes a reality in Kochi it will have a demonstrative effect at other places on how safe and advantageous it is to use LNG,&quot; the minister said.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">He was speaking at the function where Prime Minister Manmohan Singh dedicated the LNG terminal set up by Petronet LNG at an investment of Rs 4,500 crore at Puthuvype near here to the nation.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The minister said the project can be extended to Thiruvananthapuram as well, and Gas Authority of India Limited (GAIL) which is engaged in laying the pipelines can render financial support to the project.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">He suggested that the Kerala government and GAIL should form a joint venture and develop a master plan for the full utilisation of the LNG terminal in Kochi which is now operating at five per cent of its total five million tonnes per year capacity. Petronet LNG is incurring a loss of INR 300 crore per year because of the low capacity utilisation.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Petroleum and Natural Gas Regulatory Board (PNGRB) has already invited tenders for the development of the proposed city gas distribution network project in Ernakulam district. Distribution of bid documents had begun on October 15 last and the bids will be closed on February 11 this year, as per the current plan.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The industry leaders hailed the announcement of the petroleum minister. &quot;Not that the tender process is bad, but it will take time. Once the regulatory process is waived we will be ready to execute the project at the earliest possible time,&quot; said J Vasan, chairman of Gail-Kerala gas, the JV formed between Kerala government-run KSIDC and GAIL to promote the city gas project.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">CM Oommen Chandy has extended the state government&#39;s support to the city gas project mooted by the petroleum ministry.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Kochi; The proposed city gas distribution network project in Ernakulam district received a major boost on Saturday with the Minister for Petroleum and Natural Gas M Veerappa Moily announcing willingness to walk an extra mile to make it a quick reality.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">I&#39;m ready to invoke the powers vested in me to waive the regulatory conditions so that the project would become a reality soon. Once the project becomes a reality in Koch it will have a demonstrative effect at other places on how safe and advantageous it is to use LNG,&#39;&#39; the Minister said.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">He was speaking at the function where Prime Minister Manmohan Singh dedicated the LNG terminal set up by the Petronet LNG at an investment of INR 4500 crore at Puthuvype near here to the nation.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The Minister said the project can be extended to Thiruvananthapuram as well and Gas Authority of India Limited (GAIL) which is engaged in laying the pipelines can render financial support to the project.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">He suggested that the Kerala government and GAIL should form a joint venture and develop a master plan for the full utilisation of the LNG terminal at Kochi which is now operating at five per cent of its total five million tonnes per year capacity. The Petronet LNG is incurring a loss of INR 300 crore per year because of the low capacity utilisation.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Petroleum and Natural Gas Regulatory Board (PNGRB) have already invited tenders for the development of the proposed city gas distribution network project in Ernakulam district. Distribution of bid documents had begun on October 15 last and the bids will be closed on February 11 this year, as per the current plan.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The industry leaders hailed the announcement of the Petroleum Minister. Not that the tender process is bad, but it will take time. Once the regulatory process is waived we will be ready to execute the project at the earliest possible,&#39;&#39; said J Vasan, Chairman of the Gail-Kerala gas, the JV formed between Kerala government-run KSIDC and the GAIL to promote the city gas project.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Emphasising that laying of pipeline for carrying the LNG would not pose any threat to the people and agricultural activities, the Minister said the GAIL has already laid 15,000 km long pipeline in the country and another 16000 km long pipeline would be laid in the next three years.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">CM Oommen Chandy has extended state government&#39;s support to the city gas project mooted by the Petroleum ministry.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Source-On Request</span></span></span></p>