Petronet LNG wants State agency on job

Kochi: Upset by the slow pace in the project to lay pipeline to evacuate gas from the LNG terminal at Puthuvypin, Petronet LNG managing director and chief executive officer Ashok Kumar Balyan has suggested that the government engage one of its agencies to take up the job along with Gail Ltd.

“The state government must consider drafting one of its agencies such as Kerala State Industrial Development Corporation (KSIDC) or Kinfra to take up the job along with Gail,” Dr Balyan told Deccan Chronicle. “This is one way to overcome the resistance people at the grassroots have for the project.” KSIDC is already working as the nodal agency for the project, he pointed out.

Petronet had commissioned a 5 million TPA LNG terminal at Puthuvypin on the outskirts of Kochi in August 2013 but Gail has not been able to lay the pipeline to take the gas to Mangalore and Coimbatore because of people’s resistance to part with their land for the project.

The terminal at present uses only 5 per cent of its capacity and has cost Petronet Rs 400 crore a year, Dr Balyan had recently said.    

The Petronet CEO said Gujarat had successfully completed the pipeline laying work by setting up Gujarat State Petroleum Corporation to work with Gail. “Now in Andhra Pradesh, the Andhra Pradesh Industrial Infrastructure Corporation has tied up with Gail to take up the project,” he said. “The state government has already written to us assuring connectivity as soon as we complete the project.” Reliance also has shown interest in taking gas from the terminal. The next board of Petronet LNG is likely to give a final go ahead for the commissioning, which is expected to take place later this year, he said.