LNG plant will benefit power projects

Domestic gas supply and industries in Nellore, Ongole, Kurnool, Kadapa, Tirupati and other towns in southern parts of AP, north TN and west Karnataka will be benefited due to the project that has already got initial phase of permission of Terms Of Reference from the Ministry of Environment.

So far only Kakinada, Vijayawada and Hyderabad have city gas distribution networks where gas is supplied through pipelines to houses. Even vehicles can be supplied with clean CNG fuel like in Hyderabad.

When the project is realised, gas will be supplied to existing gas-based power projects and also new power projects can come up in the region.

According to LNG Bharat, “The forecast of total domestic gas demand shows that there will be shortage of 100 MMSCMD despite a likely domestic supply of 150 MMSCMD (Million Metric Standard Cubic Feet Per Day). Government has identified LNG imports and transnational pipelines have to be set up.”

The project will create employment opportunities in the region during construction and after completion.

The project will come up faster than Kakinada FSU of GAIL-Shell. There is no need for construction of off-shore structures as it will use operational LNG ships as a floating storage facility and will use an already permitted berth in the port, which is now handling petroleum products. The LNG ship has to get permission from the director-general of shipping as per marine regulations.

There are only 15 such locations in the world so far, in Europe, US and Gulf and in Gujarat.

“The LNG transferred from the floating storage to small buffer tanks located onshore will be further transferred to cryogenic road tankers and transported to the industry location,” stated the ministry of environment.

Mr Karunendra, one of the directors of LNG Bharat said, “We will come out with details shortly.”