Petronet LNG Ltd appears to have zeroed in on Dhamra port in Orissa for setting up its third LNG terminal, incidentally the first on east coast. Plans are also afoot to kick start coastal trade of LNG through daughter vessels beginning 2012 end, once the Kochi terminal is operational to large users in Sri Lanka, Andaman and Nicobar Islands and others.

Sources close to the development told Business Line that PLL had already completed a pre feasibility on Dhamra and was set to launch the feasibility study expected to be taken up by global major Mercator in a couple of weeks. The feasibility study will be ready for seeking board approval in 2011 end.

PLL had earlier referred a number of ports on the east coast including Machilipatnam and Gangavaram as possible locations for the terminal.

According to, Mr AK Balyan chairman of Petronet, the proposed east coast port would contribute to the company's plan to create a distributional channel independent of pipelines. To start with, PLL is planning to use nearly half of the projected 5 million tonne Kochi terminal capacity for coastal trade through smaller cryogenic vessels, with smaller re gasification facilities to be put up at the customer end.

Mr Balyan said that “We are looking forward to sell over 2 million tonne LNG through this route to 2 to 3 large consumers adding that the company had an offer to supply LNG to an upcoming (LNG based) thermal power generation facility in the island nation.”

Discussions are also on to offer clean fuel solutions for city gas and industrial applications in Andaman and Nicobar Islands. Opportunities are explored to cater industrial users along the east cost, including ones at Haldia in West Bengal.

(Sourced from BL)