The Hindu

BPCL, Kochi Refineries Ltd. form Gas Task Force 

• LNG regasification plant may be set up in Kochi in 2009
• At the plant, LNG brought by sea will be converted into compressed natural gas or piped natural gas
• The `Gas Task Force' will market natural gas in three States

Bangalore, Mar 18: Petronet LNG Limited (PLL) will set up a 2.5 MMTPA (million metric tonnes per annum) liquefied natural gas (LNG) regasification plant at Puthuvypeen in Kochi, Kerala, and LNG will be transported through pipelines to parts of Karnataka, Tamil Nadu and Kerala as an affordable alternative fuel, according to General Manager of Bharat Petroleum and Chemicals (BPCL) M J Mohan.

He told presspersons here that LNG brought by sea to the plant will be converted into CNG (compressed natural gas) or PNG (piped natural gas) for distribution to potential consumers. Land has been acquired from Cochin Port Trust, and construction is likely to commence in June this year, he said. The LNG regasification plant is scheduled for commissioning in 2009, he added. Mr. Mohan said the Gas Task Force (GTF) has been formed by BPCL and Kochi Refineries Ltd. for marketing natural gas in Kerala and adjoining areas of Karnataka and Tamil Nadu. Major industrial customers in Kovai, Erode, Salem and Krishnagiri in Tamil Nadu and Mangalore and Bangalore in Karnataka will use natural gas.

The GTF's role include setting up of auto CNG stations, supply of domestic piped gas and setting up of C2/C3 extraction facility.

Mohan said separate joint ventures for supply of gas to Kerala, Tamil Nadu and Karnataka will be set up. The joint venture project in Karnataka will cost between Rs. 600 crore and Rs 700 crore, with the State Government contributing five per cent of the funds needed.

Mohan said the advantages of LNG include power generation at reduced cost, availability of economical feedstock for fertilizers/petrochemicals, economical source of fuel for commercial/industrial applications, cheaper and safer fuel for domestic use and economical fuel for transport.

Natural gas, Mohan said, has a number of advantages over conventional petroleum fuels. It is the cleanest burning alternative transportation fuel available. It is lighter than air and does not ``pool'' on the ground like liquid fuels.

Besides being environment-friendly, natural gas produces nearly 90 per cent less emissions of particulate matter than petrol and diesel, Mohan said. It is also economical. On average, it is 50 per cent cheaper than petroleum fuels and is more sustainable from the point of view of supply security.

Giving a global scenario, Mr. Mohan said that it is estimated that 180 TCM (trillion cubic metres) of natural gas is available, of which about 40 per cent is in West Asia. It is estimated that 700 billion cubic metres (BCM) is available in India. Only 22 BCM is being used.