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Kerala’s existing and prospective LNG consumers have stressed on the need to revise government policies on the pricing, allocation and distribution of domestically produced gas among the States.

A meeting convened here to discuss the modalities of overcoming the irrational pricing of re-gasified LNG called for a national level pooling and allocation policy for equitable distribution of available gas among different States. It is pointed out that the Centre had a policy to allocate gas on priority basis to fertiliser and co producers. The gas produced from Assam and the Cauvery basin wells are sold to local consumers on a long-term contract basis.

However, the allocation and pricing strategy put other States, which do not have domestic gas production facilities, to a great disadvantage.

The meeting, convened by the Save FACT Action Committee, cited that the irrational pricing of RLNG had made it unaffordable to consumers. K. Chandran Pillai, chairman of the action committee, pointed out that the prevailing high cost of gas at $ 20-21 per mmBtu had put local fertiliser, power and other consuming segments in a mess. It is therefore essential to overcome the situation to usher in the second generation reforms in the state with green fuel resource.

M.P. Sukumaran Nair, Director, Centre for Green Technology and Management, suggested steps to be undertaken by the Centre, the State government and public sector institutions to overcome the hurdle and make the operation of the INR 4,600-crore LNG terminal viable.

Source-On Request