KOLKATA (miningweekly.com) - India’s Petronet LNG Limited has proposed constructing a liquefied natural gas (LNG) floating storage regasification unit (FSRU) in Andaman and Nicobar Islands.
It has submitted an application to sector regulator Petroleum and Natural Gas Regulatory Board (PNGRB), proposing the establishment of an LNG terminal linked to a 50 MW gas-based power plant to be implemented by State-run utility NTPC Limited. A portion of the LNG volume would be fed into city gas distribution channels for powering transport and households.
Gas would be imported by Petronet from spot and long term contract markets and, according to its application, the terminal would have a capacity of 0.15-million tonnes a year and would entail a capital expenditure of around $71-million.
The distribution network proposed by Petronet would cover an estimated area of 50 km2.
While city gas distribution contracts were usually awarded based on competitive bidding, if the Petronet application did not receive any competitive bids, the distribution contract would be awarded to the company.
Petronet currently operates two LNG terminal projects in the country, including Dahej in the western state of Gujarat and another at Kochi, in Kerala, in southern India with capacities of 15-million tonnes a year and 5-million tonnes a year respectively.
Petronet is a joint venture of Indian government companies, GAIL India Limited, Indian Oil Corporation Limited, ONGC Limited and Bharat Petroleum Corporation Limited.