Petronet LNG & HLL Lifecare sign agreement for LNG supply

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Trivandrum: Petronet LNG Ltd. (PLL) and HLL Lifecare Ltd. (HLL) have signed a LNG Sales and Purchase Agreement (LNG SPA) for supply of 8 metric tonnes of LNG per day for a period of five years initially.

Dr. A K Balyan MD & CEO of PLL and Dr. M Ayappan, CMD of HLL signed the LNG SPA today in presence of Chief Minister, Shri Oommen Chandy. The agreement is for PLL to supply LNG by road tankers with trade name ‘Taral Gas’ from its 5 MMTPA LNG terminal at Kochi to HLL plant at Trivandrum from January 2014.

PLL is a joint venture company set up with the initiative of Govt. of India and the Oil & Gas PSU majors. IOC, ONGC, BPCL and GAIL are the major promoters. PLL imports LNG into India with an aim to bridge the widening energy deficit in the country. PLL currently operates a 10 MMTPA terminal at Dahej, Gujarat. PLL’s second LNG terminal at Kochi is getting ready for commission by July 2013 for supply of re-gassifed LNG (RLNG) through pipelines.

The LNG SPA signed is the first of its kind in Kerala. HLL is the first organisation in Kerala to avail of the benefits of LNG direct supplies and is the first direct customer of PLL in Kerala. HLL shall be setting up a small storage tank and regas facility in their premises to receive store and vapourise the LNG into natural gas whereas PLL shall arrange loading and transportation of LNG. Apart from bringing down the fuel and maintenance cost and offering other benefits for the consumers it adds as a catalyst in enhancing the green initiatives of God’s own country.

This is a major initiative of PLL as it confirms PLL s foray into sale of LNG by road to customers in Kerala who are not presently on the pipeline route. With uncertainties and issues in pipelines, what assumes significance for the State of Kerala is that this mode establishes a faster and easier availability of LNG to areas not connected by pipelines immediately and is expected to pave way for more equitable distribution of gas in the State and beyond, quicker than expected.

Kerala Biz News

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