PM disappoints FACT on LNG

Kochi: It was one of the biggest New Year disappointments for Kochi. Along with the announcement of an international cancer centre from Union Health Minister Ghulam Nabi Azad who was here the other day, Kochi had hoped for an announcement from the Prime Minister who inaugurated the LNG terminal on January 4, that LNG would be provided at affordable costs. But both have come a cropper.

The main disappointment was for the loss-making Fertilisers and Chemicals Travancore Limited (FACT) which is the main consumer of LNG from Puthuvype.

While it buys LNG per unit at $ 21.58 from Puthuvype, the LNG from Dahej unit of Petronet and Krishna-Godavari Basin of Reliance is supplied in the range $ 4-7 per unit.

This huge disparity had been pointed out to the Centre, especially to the Union Petroleum Ministry and during the inauguration of the LNG terminal, FACT authorities were hoping that the Prime Minister would make a relief announcement.

There is a feeling that local MP and Union Food Minister Prof K.V.Thomas had not done enough to get things done the right way.

“An announcement to make LNG available on par rates would have triggered a new wave of industrial activity in Kochi and also in other parts of the state.

Several other players including Kochi Refineries Limited, NTPC at KSRTC and many of the industrial units in Kochi were looking forward to it. LNG should be priced the way petrol and diesel is priced,” said an industry watcher in the city.