October 25, 2022 [ETInfra Economic Times ] – India’s biggest gas importer also weighs plan to offer gassing up and cooling do cooling down (GUCD) service to LNG carriers, as part of a twin strategy to improve the terminal`s capacity utilisation.
Petronet LNG ltd is said to be in talks with global oil traders such as Vitol Group and Trafigura Group to rent out storage tanks at its grossly underutilised 5 million tonne capacity LNG regasification terminal at Kochi as India`s biggest gas importer looks at ways to raise utilization levels by tapping into the energy crisis in Europe that has sent LNG prices soaring.
Pronet LNG is in talks with many entities including Vitol Group – the world`s largest independent oil trading company – and Trafigura Group, the world`s second largest oil trader, for renting its storage tanks for re-export purpose, an official said.
The capacity utilisation of the Kochi LNG terminal, built with an investment of some R4,500 crores and opened in 2013, is only about 16-17 percent, as a lack of pipeline connectivity to Bengaluru, crimped sales.
Unless the terminal is connected to the national grid, there is no way it can raise capacity utilisation, the official said. Work on the Kochi-Bengaluru pipeline has languished for years due to resistance from people in areas through which it passes.
The terminal is currently supplying natural gas to Bharat Petroleum Corporation Ltd and Fact Ltd in Kochi besides a few small customers in Mangaluru through a pipeline.
The terminal has two storage tanks, each with a capacity to store about 1,60,000 cubic metres of LNG.
The Kochi terminal is capable of reporting LNG unlike other terminals in India that can only import the cargo and re=gasify it ahead of selling to customers within the country.
Petronet LNG is also weighing plans to offer passing up and cooling down (GUCD) services to LNG ships. A ship will require some 600 to 3000 metric million British thermal units of LNG.
By offering re-exporting services to oil traders, Petronet LNG reckons that it can boost the capacity utilisation of the Kochi terminal by at least 10-15 percent to 30-35 percent.
Petronet LNG has formed a subsidiary – Petronet Energy Ltd. – to carry out these activities.
To re-export of LNG and gassing up and cooling down services to LNG carriers are expected to bring more ship calls to Cochin Port, where the LNG regasification terminal is located, fetching extra revenue to Cochin Port Authority.
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