A LNG terminal proposed at Gangavaram Port by Petronet LNG Ltd (PLL), a company floated by leading public sector petroleum companies, has a hit a roadblock for a long time leading to speculation that it may not materialise.
The wish list submitted by the project proponent and reluctance for massive investment in the project are stated to be twin reasons for no progress in executing the project even after receiving environmental clearance over three years ago.
This is one among three LNG terminals envisaged in the East Coast. Two other terminals are proposed at Kakinada and Dharma by different consortiums. PLL has terminals at Dahej and Kochi and the Gangavaram project is their third one.
Pact in 2012
PLL, which signed firm and bonding sheet agreement with the Gangavaram Port Ltd in 2012, which operates a port on the city fringes under PPP mode, had committed an investment of ₹9,000 crore for the two-phase 10 million tonne project as part of providing eco-friendly energy security.
The wish list submitted to the State government seeking connectivity with three pipelines which pass through the State, buy back arrangement of one million tonne LNG for 10 years and exemption from taxes on import of capital goods for at least five years have not remained on paper.
Union Petroleum Minister Debendra Pradhan had stated in Parliament in response to a query from Anakapalle MP Muttasetti Srinivasa Rao sometime ago that PLL was awaiting response from the State Government to its wish list.
PLL wanted to invest ₹4,500 crore on first phase. It wanted to import and transport LNG directly to the customer during the phase. In the final phase, it wanted to regassify and transport to the customers through pipelines. The company has already completed detailed feasibility study and other pre-feasibility studies. If implemented, it promised to source 20 KLD of water needed by it from the port. It also promised to stick to all the environmental parameters for ‘safe’ disposal of 0.5 KL of hazardous waste it will generate every year.