Kochi Refineries wants to enter LNG business

Vol 8, PW 12 (08 Sep 04) News in Brief
     

Bharat Petroleum-owned Kochi Refineries wants to enter the business of power generation and gas marketing.

Last month,Kochi Refineries managing director BK Menon told his counterpart at Petronet LNG Suresh Mathur that it could lift 2m t/y of the 2.5m t/y of LNG planned for a proposed terminal at Kochi. This is a huge quantity, Mathur tells this report.

If the deal is finalised, we can take further steps to implement the project. Kochi Refineries wants to replace naphtha with natural gas for its hydrocracker and is planning a large gas-based power plant.

It also wants to sell LNG to industrial consumers in Kerala. Mathur is under pressure from Kerala authorities to implement the project, assuring him of ample local demand.

Kerala has signed several MoUs for the sale of regassified LNG. But MoUs are not good enough, adds Mathur.

We can only implement the project if sales agreements are signed for 60% of the proposed imports.

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