THIRUVANANTHAPURAM: HLL Lifecare Limited, in an effort to overcome the energy shortage and give a major push to green energy efforts, has set up a 39.5m3 capacity LNG storage and regasification facility. Chief Minister Oommen Chandy launched the initiative at the HLL’s Peroorkada factory on Thursday.
HLL is the first PSU in South India to shift from furnace oil to Liquefied Natural Gas which is predominantly methane that is odourless, colourless, non-toxic and non-corrosive.
Mr Chandy said the state had exempted LNG from Value Added Tax (VAT) in the last year’s budget and urged all concerned to make the maximum use of it. Dr. A. Ayyappan, chairman and managing director of HLL, requested the CM to extend LNG’s VAT exemption period.
The Petronet LNG Ltd in Kochi would provide LNG to HLL. The officials claimed that this is one of the few PSUs in the country to have green fuel which is eco- friendly and there will be no CO2 emissions. Only minimal gas is required though the price of LNG is high.
“We were using furnace oil which was Rs 100 more than that of LNG (daily prices fluctuate as per the international oil and gas markets). For instance, Wednesday’s price of one metric million British thermal unit for LNG is Rs 600. Even if the price and the energy levels are high, the expense would be less. Unlike other firms, the industrial requirement of LNG is less as we require only nine metric tonnes per day,” said a top HLL official.
In fact, the Kochi terminal of the LNG’s capacity is five million metric tonnes per annum. The HLL’s requirement is like a drop in the ocean and the LNG will be transported by road.
The storage maintenance would be minimal. Earlier, when furnace oil was being used, monthly maintenance was required.
