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When LNG will Course Through Infrastructure Veins

  • Commissioning of the LNG terminal in Kochi will make 2012 a landmark year for industry in Kerala and elsewhere in South India. R. RAMABHADRAN PILLAI gives a run-down on the project.The year 2012 will make a mark in the industrial history of Kerala with the launch of the eagerly awaited LNG (liquefied natural gas) terminal in Kochi. The Petronet LNG project on the Puthuvype island promises to add a new dimension to the infrastructure scene in Kerala, elevating the State's position as a key stakeholder in the progress of a number of ventures across South India.

  • The terminal costs an estimated Rs.3,750 crore. The investments do not stop there. Another Rs.2,500 crore is being spent on making vessels specially designed for carrying the gas. GAIL (India) Ltd., formerly Gas Authority of India Ltd., is laying pipelines to carry the gas to various locations within Kerala and outside at a cost of Rs.5,000 crore.The LNG project envisages long-term natural gas supply. Liquefaction of natural gas, its marine transportation, storage and loading facilities, re-gasification, and laying pipelines for supply to the market are part of the project.

  • LNG, an eco-friendly fuel, is capable of meeting much of the fuel requirements of domestic and industrial segments. It can be used to run certain types of power plants. The clean fuel, which is cheaper than LPG, can be transferred in pipes to households. It is used for boiler and heating applications in industry. Its use in automobiles as an alternative fuel reportedly results in 30-40 per cent more efficiency. In the petrochemical sector, several significant chemical products, such as methanol, can be produced from natural gas. Climate change and global warming have added a new dimension to the promotion of LNG.

  • Natural gas consists of mostly methane, with small amounts of ethane, propane, and butane. It is transported through pipelines, but is extremely bulky. When cooled at minus-160.5 degrees centigrade, it changes state to liquid and becomes compact, occupying only one-600th of the gaseous volume. LNG is colourless, odourless, non-toxic, non-corrosive, and less dense than water. Being highly volatile, LNG requires specialist operators for handling.GAIL Gas Ltd., a wholly owned subsidiary of GAIL (India) Ltd., and the Kerala State Industrial Development Corporation signed a shareholders agreement three months ago to set up a joint venture, Kerala GAIL Gas Ltd., to pursue city gas distribution opportunities in the State.

  • GAIL (India) Ltd. is engaged in developing natural gas infrastructure in Kerala ahead of the commissioning of the terminal. It is laying the Kochi-Koottanad, Koottanad-Bangalore, and Koottanad-Mangalore pipelines. The pipelines will pass through Kerala, Karnataka, and Tamil Nadu.In Kerala, the pipeline passes through Ernakulam, Thrissur, Palakkad, Malappuram, Kozhikode, Kannur, and Kasaragod, and is set to have an impressive impact on the industrial development of the State. The undersea pipeline from Kochi to Kayamkulam in Alappuzha district is expected to be connected to suppliers in districts such as Kollam and Thiruvananthapuram by land.

  • The company is preparing for city gas distribution throughout the State by participating in the bidding process of the Petroleum and Natural Gas Regulatory Board, the authorised body through which the process is executed. There are 14 geographical areas for distribution in Kerala, each district being considered one.The company intends to supply compressed natural gas (CNG) for vehicles and piped natural gas to households, commercial establishments, and industries. A number of major industrial units, such as FACT, will benefit from the gas supply, which will be cost-effective.

  • A detailed feasibility report for Ernakulum and Kozhikode has been prepared to bid for these two geographical areas.The company plans to prepare business plans for the remaining 12 areas, set up CNG stations at bus depots of the Kerala State Road Transport Corporation, and supply natural gas to power plants, cold storage units, and wind power plants.

  • Petronet LNG has signed contracts for supply of LNG with RasGas, Qatar, and Exxon Mobil, Australia. Efforts are on to source additional LNG from other countries. The capacity of the Petronet LNG terminal at Dahej is being increased to 12.5 MMTP and beyond. The infrastructure of the Kochi plant has been upgraded to handle double the initial planned capacity of 2.5 MMTP.India produces natural gas in the western offshore regions, especially the Mumbai High complex. There are onshore fields in Assam, Andhra Pradesh, and Gujarat. Oil and Natural Gas Commission and Reliance Industries have made major finds in the Krishna Godavari basin. Despite the large natural gas finds, it is expected that the demand in India will outstrip supply in future.

  • Several schemes are being planned to meet the increased demand.The Iran-Pakistan-India pipeline envisages bringing gas from Iran to Gujarat, but political and pricing issues have delayed the plan. Another initiative, to include India in the Turkmenistan-Afghanistan-Pakistan pipeline project, is intended to explore Turkmenistan's natural gas fields and transport the fuel to markets in Afghanistan, Pakistan, and India.The project is also facing hurdles, say sources in the industry. Nevertheless, such initiatives indicate the potential of the natural gas sector in which the role of South India in general and Kochi in particular will be of much significance.

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