Asian LNG buyers must unite: PM
5 Jan 2014 10:57 PM GMT
‘Asia has been the driver of global LNG demand in recent times. It is, therefore, important that major buyers of LNG in Asia come together to demand a fair pricing mechanism for gas being imported from outside of Asia,’ Singh said while dedicating to the nation the Rs 4,500 crore Petronet LNG terminal at nearby Puthyvype here.
The Prime Minister expressed the hope that India would contribute towards an effort of this kind in the future. ‘Our country has less than 1 per cent of the world’s known natural gas reserves.
Therefore for augmenting the supply of natural gas in our energy mix, we must necessarily import natural gas either by by setting up LNG terminals or through trans-national pipelines,’ he said. Import of natural gas and pricing the imported gas constitute challenges that we must meet successfully in the time to come, he added.
Pointing out that the terminal should be utilised to its fullest capacity, Singh urged the agencies concerned to do everything possible to ensure this. Petronet LNG has already tied up to supply 14.4 lakh tonnes of LNG per year for the Kochi terminal from the Gorgon project in Australia for a 20 year period, he said adding the company was also at an advanced stage of discussion with other LNG suppliers for long-term contracts.
To make full use of the large investment in this project, the focus must be on increasing penetration of natural gas in Kerala by augmenting the pipeline network as done in the northern and western parts of the country. There was also need to explore how industrial units could make greater use of natural gas, he said.
Petroleum Minister M Veerappa Moily said that he wanted fast completion of the laying of pipelines in Tamil Nadu and Kerala. ‘I will be happy when pipelines are laid across Tamil Nadu and gas reaches Bangalore and Mangalore.’ Pointing out that Kerala would have to work out a plan for optimum use of LNG, he said he would use the powers vested with him to enable early clearance of city gas project.
Petroleum Secretary and Petronet LNG Chairman Vivek Rae said, ‘We are working on leveraging our buying power so that Indian shipyards will qualify to manufacture LNG ships. We are trying to crack this problem.’ Presently, Korea and Japan construct such vessels.
He urged the governments of Kerala and Tamil Nadu to help in expeditious completion of laying of the underground GAIL pipelines. ‘If the southern states are connected it would be a big boost to the economy,’ he said. Presently, only 5 per cent of LNG was being utilised from the terminal which would mean a loss of over Rs 300 crore, he said.
Kerala Governor Nikhil Kumar, Union ministers K V Thomas, Lakshmi Panebaka and state Excise minister K Babu were among those present. Operations at the terminal began since August last year after the first shipment of about 123,000 M3 of LNG gas arrived from Rasgas in Qatar.
Besides the Kochi plant, Petronet operates a 10 million tonnes per annum terminal at Dahej in Gujarat, which it plans to expand to 15 million by 2016.
The Prime Minister expressed the hope that India would contribute towards an effort of this kind in the future. ‘Our country has less than 1 per cent of the world’s known natural gas reserves.
Therefore for augmenting the supply of natural gas in our energy mix, we must necessarily import natural gas either by by setting up LNG terminals or through trans-national pipelines,’ he said. Import of natural gas and pricing the imported gas constitute challenges that we must meet successfully in the time to come, he added.
Pointing out that the terminal should be utilised to its fullest capacity, Singh urged the agencies concerned to do everything possible to ensure this. Petronet LNG has already tied up to supply 14.4 lakh tonnes of LNG per year for the Kochi terminal from the Gorgon project in Australia for a 20 year period, he said adding the company was also at an advanced stage of discussion with other LNG suppliers for long-term contracts.
To make full use of the large investment in this project, the focus must be on increasing penetration of natural gas in Kerala by augmenting the pipeline network as done in the northern and western parts of the country. There was also need to explore how industrial units could make greater use of natural gas, he said.
Petroleum Minister M Veerappa Moily said that he wanted fast completion of the laying of pipelines in Tamil Nadu and Kerala. ‘I will be happy when pipelines are laid across Tamil Nadu and gas reaches Bangalore and Mangalore.’ Pointing out that Kerala would have to work out a plan for optimum use of LNG, he said he would use the powers vested with him to enable early clearance of city gas project.
Petroleum Secretary and Petronet LNG Chairman Vivek Rae said, ‘We are working on leveraging our buying power so that Indian shipyards will qualify to manufacture LNG ships. We are trying to crack this problem.’ Presently, Korea and Japan construct such vessels.
He urged the governments of Kerala and Tamil Nadu to help in expeditious completion of laying of the underground GAIL pipelines. ‘If the southern states are connected it would be a big boost to the economy,’ he said. Presently, only 5 per cent of LNG was being utilised from the terminal which would mean a loss of over Rs 300 crore, he said.
Kerala Governor Nikhil Kumar, Union ministers K V Thomas, Lakshmi Panebaka and state Excise minister K Babu were among those present. Operations at the terminal began since August last year after the first shipment of about 123,000 M3 of LNG gas arrived from Rasgas in Qatar.
Besides the Kochi plant, Petronet operates a 10 million tonnes per annum terminal at Dahej in Gujarat, which it plans to expand to 15 million by 2016.
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