Four giants enter pact over LNG regasification terminal at Mangalore Port

The LNG terminal will be of 2-3 MMTPA capacity, expandable to 5 MMTPA. Feasibility studies on the project will be carried out, including technical, marine and environment dimensions, and an investment decision is expected by early 2014. A timeline of 2018 is being eyed for commissioning of the project.

Chief Minister of Karnataka Jagadish Shettar, former Union Minister Oscar Fernandes, Udupi-Chikmagalur MP Jayaprakash Hegde, Mangalore MP Nalin Kumar Kateel and several others were present during the signing of the MoU.

Speaking on the occasion, Chairman and Managing Director of ONGC Sudhir Vasudeva said that India was the fourth largest consumer of energy and 13th largest consumer of gas in the world. The single most parameter to judge the growth and performance of a country is energy consumption. To sustain the 8 percent GDP growth rate during 2011-12 to 2031-32, India will require significant energy, amid increase in demand for oil from 166 million tonnes to 486 million tonnes and requirement of gas from 44 Mtoe to 197 Mtoe, he said.

The current gas supply of 166 MCM, inclusive of the imported LNG is not sufficient to meet the existing demand of gas, and projections indicate demand-supply gap of the tune of 155 – 225 MCM. ONGC has worked hard for the energy security of the country and contributes 71 per cent of the country's oil production and 54 per cent of gas production. But, the demand has been galloping so much that today we are 75 per cent more dependent on oil and 25 per cent more dependent on gas. ONGC has decided to have a perspective plan for the next 18 years, under which it envisions increasing its production from 60 million tonnes to nearly 130 million tonnes by 2030. And, the setting up this regasification terminal can help achieve its projected goals, he said.

Dr Moily said that Karnataka was the only state left out without an LNG terminal. The LNG terminal will create a revolution in India, Karnataka and in Mangalore, and Karnataka will be the highest beneficiary of this project, he said.

Speaking about future projects, he said that a CNG pipeline would be set up from Cochin to Mangalore by Bharat Petroleum Ltd. and another from Cochin to Devangudi. Once they are set up, there will be gas coming to Mangalore, which will be piped to Bangalore. Thereafter, a CNG terminal would be set up in Bangalore, which will open up a gateway for prosperity in Karnataka, he said.

BPCL Chairman R K Singh said that Mangalore was the most strategic position for setting up a LNG terminal. With the commissioning of the LNG terminal in Mangalore, people and industries of Karnataka will have access to cheaper and greener energy, which is vital for the development of the country. There has been a recent discovery of natural gas reserves in Mozambique in East Africa, where BPCL holds ten percent of the stakes, he said.

Chairman of NMPT Dr P Tamilvanan said that LNG was cheaper and more environment-friendly than other fuels. NMPT handles almost 2.08 million tonnes of LPG, i.e. 47 per cent of the country's LPG, which is sufficient to fuel 1.5 crores of domestic cylinders, he said, proving that the port was equally equipped to handle large intake of LNG as well.

Chairman of Mitsui Corporation Mr Suzuki spoke on the occasion and expressed his pleasure and confidence on the proposed project.

Director of Human Resources, ONGC welcomed the gathering and outlined the proposed LNG project.