Tuesday, 15 September 2015

IOC's plans: Ennore LNG terminal to come up in 2018 but will the evacuation network be in place by then?

The success of IOC's Rs 5000 crore, 5 MMTPA LNG regasification terminal in Ennore -- to be completed in 2018 -- will depend critically on its success in getting the gas evacuation network in place. 
8Or else it may face the same prospect as that of the Kochi refinery where the capacity utilization figure is in single digit on account of the fact that the supporting gas pipeline network is not in place.
8IOC in fact is planning to lay a 1,167-km pipeline to reach LNG imported at Ennore to Nagapattinam, Tuticorin, Madurai and Bengaluru.
8Whether the company will be able to elicit the support of farmers and state governments to lay the network remains a moot point.
8This pipeline, along with three other upcoming gas pipelines -- Mallavaram-Vijaipur, Mehsana-Bhatinda and Bhatinda-Srinagar pipelines -- would ensure a significant presence for IOCL in the gas transmission business. 
8IOC is trying very hard to compete with GAIL for supplying LNG in India. 
8In 2014-15, despite tough market conditions, IOCL achieved a 6 per cent growth in LNG sales. Besides making independent purchases, long-term LNG supplies have also been tied up from US and Canadian sources.
8Indian Oil has also become the second largest non-APM gas seller in India, with a market share of 30 per cent in the R-LNG segment. 

For more details visit indianpetroplus.com

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