There would be a uniform average pricing pattern for liquefied natural gas (LNG) across the country as per the pricing policy of the Union government, according to P Das Gupta, managing director, Petronet LNG Limited (PLL). Gas would be delivered at an average price of $ 5.75 per MMBTU as per the current pricing strategy of the company. | |
| "There will be price equalisation for the customers of north and south India. The price will also be extremely competitive," he added. |
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| Addressing a press conference here today, Gupta said that the proposed LNG terminal would require five million tonne gas since there is good demand in south India, especially in Kerala and Tamil Nadu. The Kayamkulam unit of NTPC will have a yearly requirement of 2.1 million tonne. |
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| As various clearances have been obtained, PLL will speed up the construction of the new terminal at Puthuvype near Kochi. He said that the equipment procurement and construction (EPC) bid would be awarded by March and bidding was in the final stage now. There are three bidders for the Rs 3,000-crore project. |
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| The construction of the boundary wall will commence by next month as the ground breaking ceremony was performed at the site today. |
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| PLL plans to complete the first phase of the project by 2010 and the basic facilities would be put in place in order to meet the future expansion plans also. |
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| He added that the contract for transportation of LNG to Kochi would also be finalised in the current fiscal itself and PLL already short-listed four bidders for carrying gas. |
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| The company would finalise the contract with Gorgon Projects of Australia soon for supplying LNG. |
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| Das Gupta said getting LNG would not be a real problem as PLL was in talks with various companies, including RAAZ Gas of Qatar. The project cost of Kochi terminal has been revised to Rs 3,000 crore as the price of nickel steel has increased. |
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| PLL sees a market size of 7.5 million tonne in south India within a few years and in the very first year of operation of the Kochi terminal, the demand would be around 5 million tonne. Marketing of re-gasified natural gas from the terminal will be handled by BPCL, IOC and GAIL (India) Limited. |
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