Visakhapatnam: There are doubts about whether a proposal to set up a Liquefied Natural Gas (LNG) terminal at Vizag will become reality. Petronet LNG Ltd (PLL) had proposed to set up an LNG terminal at Vizag’s Gangavaram port.
It’s been two years since PLL’s LNG terminal project got the nod from the Ministry of Environment and Forests (MoEF), but there has been no progress on the ground.
PLL sought the state government’s help on three areas, namely, connectivity with three gas pipelines that pass through the state with the proposed LNG terminal, commitment from the power sector to buy at least 1MMTPA of gas for 10 years and exemption of levy of VAT on import of capital goods for the project as well as on gas sales to end consumers for a period of five years.
“PLL is yet to receive a response on these three issues,” said Union petroleum minister Dharmendra Padhan in a reply to Anakapalle MP Muttamsetti Srinivas Rao who had sought information from him on the progress of the LNG project.
“In the meanwhile, the term sheet signed between Gangavaram Port Ltd (GPL) and PLL has lapsed. Further, some other LNG terminals on the east coast, namely Kakinada and Dhamra, are making progress which will take away a part of the potential demand which was proposed to be served by the Gangavaram terminal. To ensure commercial viability of the project, it is important to have a commercial structure in place,” he added.
The LNG Terminal, which was to comprise facilities for receiving, storage and regasification of LNG, was expected to involve an approximate investment of Rs 4,500 crore.
