Financial Daily from THE HINDU group of publications
Tuesday, Feb 03, 2004
India mulls LNG terminal to bring Myanmar gas
Mumbai , Feb. 2
THE Union Government is considering the possibility of setting up an LNG terminal on the East Coast to transport gas from Myanmar to India.
"We are examining the possibility of building an LNG terminal to bring in gas from Myanmar, depending on how much gas is available from the gas field,'' the Union Petroleum Secretary, Mr B.K. Chaturvedi, said here at the Second Asia Gas Buyers' Summit.
Other possibilities are also being considered. These include laying onshore pipelines or transporting gas through vessels along the coast.
The gas will be brought in from the Myanmar field in which the OVL-Gail combine and Korean companies had announced a discovery of 5 trillion cubic feet of gas last month.
"It is a major discovery going by initial estimates," the Secretary said.
He said setting up LNG terminals would become cheaper now that the Government has reduced duties on capital equipment.
Speaking about importing 5 million tonnes gas from Iran, Mr Chaturvedi said the India continued to consider both options of building an onland pipeline through Afghanistan and Pakistan as well as the undersea routes.
"The decision (onland or undersea pipeline) will depend on cost estimates. If the landed price of gas is $2-2.5 per mmbtu, that will be good," he said.
Currently, the average prices of imported gas stand at $5.5-6 mmbtu.
The draft policy guideline on inter-State gas carriers has attracted more than 50 suggestions form various corporates, Mr Chaturvedi said.
The policy guideline had suggested that one designated company be responsible for setting up the network; a suggestion opposed by other companies.
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