New LNG terminal for Myanmar gas
10 February 2004
Mumbai: The unioin government is looking at the possibility of building the country's fourth LNG terminal to transport gas from Myanmar through pipelines via the northern states. This was disclosed by the union petroleum secretary, B K Chaturvedi at the Second Asia Gas Buyers' Summit in Mumbai.
Last month, the consortium between ONGC Videsh Ltd and Gas Authority of India Ltd, working along with Korean companies in Myanmar, had reported a gas strike estimated to contain 5 tcf.
Charturvedi also disclosed that the gas from the LNG terminal at Dahej in Gujarat would add about one-third to the total availability in the country while the second terminal at Hazira would add about 8-10 standard cubic metres (SCM) of gas.
Even by the conservative six per cent GDP growth, the total demand for gas in the country would touch about 300 SCM, he said adding, thrust should be given by companies on price competitiveness due to the price sesitivity of the Indian economy.
To make LNG affordable, the government has brought down the rate of interest to eight per cent from 14 per cent and cost of transportation to 30-32 cents from 45-50 cents, Chaturvedi, said adding, the cost for regassification was brought down to 45 cents from 50-55 cents and would be reduced further.The costs, he said, would come down further after the Dahej plant's capacity is augmented to 7.5-10 mt from the present five mt and the reduction of duty on import of capital equipment.
He also disclosed that the government was discussing a package to bring in five million tonnes of LNG from Iran and "we are examining various options to bring the gas here. "The gas from Iran through the land route would be feasible only if it could be brought for between $ 2 and $ 2.50, he said and stated that ONGC Videsh Ltd was discussing the possibility of conducting gas exploration in that country.
On the national gas pipeline policy , Chaturvedi said about 50 suggestions and representations had been received and are being processed. He added that fast transportation and monetising of the gas were the priority for the Government.