More gas customers for Petronet-LNG

Vol 3, PW 23 (08 Dec 99) Midstream & Downstream

Is Petronet-LNG moving ahead in the race to acquire the maximum number of customers for its regassified LNG It certainly looks that way.

Three more companies have announced MOUs for the supply of regassified LNG from Petronet-LNGs Dahej terminal. They are: آ· Duncans Industries (fertiliser) آ· SKN Industries (industrial users) آ· RPG Dholpur (power company) A statement released by Petronet-LNG said Duncans will receive 1.66m cubic meters a day (cm/d) for its Panki fertiliser unit, located about 10 km from the nearest point on Hazira-Bijaipur-Jagdishpur (HBJ) pipeline, operated by Gas Authority of India (GAIL).

Duncans produces 2,046 tonnes of urea per day and plans to replace naphtha with gas. The MOU with SKN Industries provides for the supply of 1.5m cm/d for domestic and commercial consumers in Faridabad, Haryana.

RPG Dholpur Power will receive 3m cm/d for its proposed 720-MW power project at Bholpur in Rajasthan. Petronet said gas would be supplied to all of these projects in phases from the latter half of 2003 onwards via the HBJ.

Table: List of Petronet-LNGs potential customers (correct on 1st December 99) Category 1: MOUs which have been formally signed Category 2: MOUs finalised with signing imminent Category 3: Projects where stumbling blocks remain Buyers of 5m t/y of LNG from Dahej Company Quantity Category Essar Power * 2.25m cm/d 1 Indo-Gulf Fertilisers 2.65m cm/d 1 STI Power 1.5m cm/d 1 IPCL 1.5m cm/d 2 GNFC 2.3m cm/d 2 Torrent Power ** 4.5m cm/d 3 Chambal Fertiliser 1.8m cm/d 1 RPG Dholpur√ 3m cm/d 1 Gujarat State Fertiliser 2m cm/d 3 GIPCL 1.5m cm/d 3 National Fertiliser (+) 3.6m cm/d 3 Duncans Industries 1.66m cm/d 1 SKN industries 1.5m cm/d 1 Buyers of 2.5m t/y LNG from Cochi Company Quantity Category Siasin Energy 2.74cm/d 1 Palakkad Power 1.5m cm/d 1 FACT (آ§) 0.85m cm/d 1 NTPC ++ 8-10m cm/d 3 BSES 0.8m cm/d 2 BPL Power 2.25m cm/d 3 *Initially for 1.2m cm/d, increased to adjust for expansion of 515-MW power plant **Negotiations stall on Torrent demand for 26% equity in Petronet-LNG √Existing Fuel Supply Agreement with IOC (+) Bijaipur plant needs 1.8m cm/d; Panipat plant needs 1.8m cm/d (آ§) For use in ammonia plant (++) Needed for expansion of Kayamkulam plant from 2000 MW to 2300 MW. If agreed, it will account for entire 2.5m t/y at Cochi.