LNG Terminal project to be commissioned by Feb 2011

KOCHI: The Rs 3,000 crore Petronet LNG terminal project at nearby Puthuvypeen island will be commissioned by Feburary 2011, Union Petroleum minister Murli Deora said on Sunday.

The foundation stone for the project is expected to be laid by October, depending on the Prime Minister's convenience, the minister told a Press meet.

Asked if there would be any cost escalation due to delay in completion of the terminal, Deora replied in the negative. The project was to be completed by end of 2009.

Petronet LNG Ltd (PLL) has already negotiated with the Australian company, Gorgon, for the supply of 2.5 million tonnes of LNG. The gas supply agreement with the NTPC will be conclued by June next year, before which the contract with the Australian company would be signed.

On the reason for the delay of the much awaited project, he said that negotiations on long term procurement would take time. There were several agencies involved and many issues to be sorted out.

The Australian company also had some environmental concerns, which has to be settled, he said.

Road connectivity to the project site has to be established as PLL would have to transport about 250 truckloads of soil every day for land filling. Kochi port has assured that the work would be completed in one year. The port has also agreed to construct a temporary bridge, he said.