Cochin Port inks pact with Petronet LNG

The Cochin Port has inked the long-pending concession agreement with Petronet LNG Ltd for setting up an LNG terminal and a re-gassification plant within the port-based special economic zone at Puthuvype near here. The agreement is for a period of 30 years and can be extended to another 30 years.

The project will have a capacity of 2.5 mmtpa (million metric tonne per annum) with a provision to double it. The port has allotted 33.40 hectares at Puthuvype on lease.

Petronet has already awarded the EPC (engineering, procurement, construction) contract for construction of storage tanks to IHI Japan. The project is estimated to cost over Rs 4,000 crore.

All the pre-project activities including onshore and offshore surveys/investigations, and preparation of a detailed feasibility report among others have been completed. The company has also received environment clearance from the Ministry of Environment and Forests.

The availability of LNG will positively impact the working of downstream industries such as Fertilizers and Chemicals Travancore Ltd (FACT), Kayamkulam Thermal Power Plant of NTPC in Kerala and foundry and textile units in Salem and Coimbatore in Tamil Nadu.

The project is estimated to create direct employment for around 150 people and the indirect employment for 2,000 to 5,000 persons, a port release said.