Press Esc to close
Monday 26 January 2015
News updated at 11:46 AM IST
Weather
Max: 26°C
Min : 18°C
In Bengaluru
Sunny day

ONGC signs MoU for Mangalore LNG terminal

New Delhi, Mar 19, 2013, (PTI) :

State-owned Oil & Natural Gas Corp (ONGC) and its partners Mitsui of Japan and BPCL have signed an agreement to conduct feasibility of setting up USD 500-750 million liquid gas (LNG) import terminal at Mangalore.

ONGC, Bharat Petroleum Corp Ltd (BPCL) and Mitsui signed the Memorandum of Understanding (MoU) with New Mangalore Port Trust yesterday. ONGC issued a statement informing of the MoU today.

The terminal will have an initial capacity of 2-3 million tons, which can be expanded to 5 million tons later.

"The MoU documents the Port's No-Objection to carry out the feasibility studies and intention to extend all cooperation to the consortium in this regard," the statement said.

The MoU was executed in presence of Karnataka Chief Minister Jagadish Shettar and Union Petroleum Minister M Veerappa Moily.

Post this MoU, feasibility studies on the project will be carried out, including technical, marine and environment dimensions. "The studies would throw up concrete action plans; an investment decision is expected by early 2014. The consortium is eyeing a timeline of 2018 for commissioning," it said.

Mangalore has a unique position vis--vis the future demand and supply matrix of LNG. From the demand side, Mangalore is a fast-growing industrial hub with presence of Mangalore Refinery & Petrochemicals Ltd (MRPL), petrochemical complex ONGC Mangalore Petrochemicals Ltd (OMPL) and Special Economic Zone Mangalore SEZ (MSEZ).

Additionally, Mangalore hosts an iron ore industry, fertiliser plants and their ancillary industrial units. Currently, these industries are using heavy liquid sources like fuel oil and naphtha for their energy and feedstock needs.

Considering the growing demand of energy coupled with increasing focus on environment, there is a strong case for environment-friendly LNG replacing these polluting fuels, it said.

"The Mangalore region rides on a virgin LNG demand of 2-2.5 million tons per annum," the statement said.

The first phase of the terminal will cost USD 500-750 million (Rs 2,800 to 4,200 crore) and is expected to be completed in 3-4 years.

In 2005, ONGC had plans to build a liquefied natural gas (LNG) terminal, which were then shelved in 2006 due to change in leadership.

But now the company has again started looking actively at the plan of LNG import, with the clear idea that domestic gas availability at 160 million standard cubic metres per day in 2015-16 will be way short of demand of 290 mmscmd.


Go to Top

Photo Gallery
President Barack Obama is welcomed by  Narendra Modi and others during an arrival ceremony...

President Barack Obama is welcomed by Narendra Modi and others during an arrival ceremony...

Bollywood actor Shahwar Ali enjoying with the National Flag in a water scooter during Republic Day..

Bollywood actor Shahwar Ali enjoying with the National Flag in a water scooter during Republic Day..

Obama being presented a spinning wheel as a memento during his visit to Rajghat in New Delhi...

Obama being presented a spinning wheel as a memento during his visit to Rajghat in New Delhi...

Barack Obama participates in a tree planting ceremony at the Raj Ghat Mahatma Gandhi Memorial...

Barack Obama participates in a tree planting ceremony at the Raj Ghat Mahatma Gandhi Memorial...

Barack Obama throws rose petals as he participates in a wreath laying ceremony at the Raj Ghat...

Barack Obama throws rose petals as he participates in a wreath laying ceremony at the Raj Ghat...

Barack Obama and  Narendra Modi during their joint press conference at Hyderabad House in New Delhi.

Barack Obama and Narendra Modi during their joint press conference at Hyderabad House in New Delhi.

President Barack Obama is escorted during an arrival ceremony at Rashtrapati Bhavan...

President Barack Obama is escorted during an arrival ceremony at Rashtrapati Bhavan...

Narendra Modi and US President Barack Obama stroll in the gardens of Hyderabad House in New Delhi...

Narendra Modi and US President Barack Obama stroll in the gardens of Hyderabad House in New Delhi...

Young girls buying tricolour on the eve of Republic Day celebrations in Allahabad on Sunday...

Young girls buying tricolour on the eve of Republic Day celebrations in Allahabad on Sunday...

Barack Obama walks to inspect a guard of honour during his ceremonial reception...

Barack Obama walks to inspect a guard of honour during his ceremonial reception...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523