More LNG by truck to leave Kochi

Vol 20, PW 10 (09 Feb 17) News in Brief

Mangalore Chemicals & Fertilisers is preparing to receive first deliveries of LNG by truck from the stranded Kochi terminal under an agreement signed with IndianOil four years ago.

No R-LNG deliveries to the MCFL factory at Panambur, a famous coastal tourist spot and major industrial hub 9-km from Mangalore, have been possible because of GAIL's inability to lay a gas evacuation pipeline after the two companies signed a transmission deal in 2012. But that will change "later this year" when MCFL begins receiving up to 200 tonnes/day of LNG ferried by 20-tonne trucks, says a source.

Before receiving LNG however MCF will spend around Rs100cr ($15m) on building truck unloading facilities, a 1060-kilo litre storage facility with four tanks and regasification facilities at the factory premises. Forced to use naphtha, a MCFL source confirms the switch to R-LNG is in line with an "energy improvement" initiative in the production of ammonia and urea at the company.

He however declined to divulge any specific time-frame for the first LNG deliveries by truck.