Cochin LNG Terminal

Petronet LNG Limited, one of the fastest growing world-class companies in the Indian energy sector, has set up the country's first LNG receiving and regasification terminal at Dahej, Gujarat, and is in the process of building another terminal at Kochi, Kerala. While the Dahej terminal has a nominal capacity of 10 MMTPA [equivalent to 40 MMSCMD of natural gas], the Kochi terminal will have a capacity of 5 MMTPA [equivalent to 20 MMSCMD of natural gas.

 

PLL, incorporated on April 2, 1998 ,formed as a Joint Venture by the Government of India to import LNG and set up LNG terminals in the country, it involves India's leading oil and natural gas industry players. The promoters are GAIL (India) Limited (GAIL), Oil & Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL).

Kochi LNG is a proposed greenfield Liquefied Natural Gas (LNG) storage & re-gasification terminal at Puthuvypeen Special Economic Zone (SEZ), Cochin.The land was allotted by Cochin Port Trust. Construction of the terminal is in full swing and the commissioning of the facility is expected in 3rd Quarter of 2012.

The Cochin Project involves setting up of

(i) 2 LNG Storage Tanks, each of 160,000 m3 storage capacity of full containment type for storing LNG and allied facilities / equipment for boil-off gas recovery, gas vapourisation, transmission & unloading of LNG ;

(ii) Send out and re-gasification facilities suitable for handling 2.5 MMTPA of LNG along with the associated facilities

(iii) Marine or Offshore facilities including the jetty, berthing / unberthing and mooring / unmooring of LNG Tankers and other associated facilities required for all weather operations of LNG ships of nominal capacities ranging from 65,000 to 216,000 m3

(iv) A captive Power Plant.

The contractual structure for Kochi Project would also be similar to the tram line model followed for the Dahej Projects. The Company proposes to source LNG from the Gorgon Project in Australia, which is promoted by Chevron (50%), Exxon Mobil (25%) and Shell (25%). The TCA, GSPA and GTA will be executed on back-to-back basis with the LNG SPA. PLL will also be hiring two LNG vessels under long term charter and has also acquired 3% equity stake in the special purpose company formed to own and operate LNG tankers that would be utilized to transport LNG to the Kochi Project.

Two Storage Tanks of Cochin LNG project is been constructed by IHI, Japan ,the re-gasification facilities being constructed by CTCI, Taiwan and the marine facilities being constructed by Afcons Infrastructure Ltd.

What is Natural Gas?

Natural Gas consists mainly of Methane and small amounts of ethane, propane and butane. It is transported through pipelines but is extremely bulky. A high-pressure gas pipeline can transport in a day only about one-fifth of the energy that can be transported through an oil pipeline.

What is LNG ?

The very concept of Liquefied Natural Gas (LNG) is a response to the inefficiency of natural gas pipelines and the technical and economic problems of running pipelines over long distances. If natural gas is cooled at minus 160.5° C, it becomes liquid and more compact, occupying just 1/600th of the gaseous volume. This is because most of the heavier hydrocarbons are removed during liquefaction.The cargo that is transported in bulk by sea is predominantly methane (over 80%) — a colourless, odourless, transparent liquid which is non-toxic, non-corrosive and less dense than water. As LNG is highly volatile, specialist operators are involved in its transportation.

A TYPICAL LNG CHAIN

i. Upstream development of long-term natural gas supply for feed gas to an LNG plant

ii. Downstream development of liquefaction , storage and loading facilities

iii. Marine transportation

iv. Downstream development of receiving terminals for re-gasification and pipeline transportation to market

 Applications of LNG

Natural Gas is not only efficient, clean, eco-friendly and flexible in control, it meets many of the fuel requirements of modern industrial society. LNG's main applications are:

a) Electricity generation : Fuel for base load and combined cycle/ co-generation power plants.

b) Public and commercial : This clean fuel, which is cheaper than LPG, can be used as piped gas for households. In the West, most household consumption is accounted for by piped gas, whose use is increasing rapidly

c) Industrial :  Under boiler fuel for steam raising and heating applications.

d) Alternative motor fuel to diesel : The use of natural gas as fuel for automobiles is increasing rapidly as it is 30 to 40% more efficient and much cleaner than traditional fossil fuels. With only one carbon and four hydrogen atoms per molecule, it is the most eco-friendly option and is gaining increasing relevance in the age of Global Warming and Climate Change.

e) Petrochemicals : Several vital chemical products, e.g. methanol, can be derived from natural gas.

INDIA – A MAJOR GAS/LNG CONSUMER

At present India is the 13th largest gas consumer (65 BCM) and 6th largest LNG importer( 16 BCM). India’s LNG import capacity as of now is around 13.5 Mmtpa and meeting approx. 20% of total gas supply of the country.

Hydrocarbon Vision 2025’ envisaged a GDP growth of 5-6% for the E&P sector along with demand supply scenario of oil & gas in the Country. Current GDP growth of 7–9% translate into overall energy demand growth at CAGR of 7.50%. Considering the projected economy growth and related energy requirement, the Share of Natural Gas in Indian energy basket is expected to increase from 11% to 20% by 2025. Despite increase in domestic gas production dependency on imported gas to increase substantially to full fill the growing demand.