Petronet invites bids to lease out LNG storage tanks

Petronet LNG Ltd, the nation's biggest importer of liquid natural gas, has invited bids to lease out under-utilised storage tanks at its recently commissioned LNG import facility at Kochi in Kerala.

Petronet LNG Ltd, the nation's biggest importer of liquid natural gas, has invited bids to lease out under-utilised storage tanks at its recently commissioned LNG import facility at Kochi in Kerala.

The company operates the 5 million ton-a-year Kochi terminal at a sub-optimal 5 per cent of capacity because of a delay in laying of pipelines connecting the port to consumption centres in Karnataka and Tamil Nadu.

To make Kochi an economically viable proposition, Petronet has invited bids to lease out two liquefied natural gas (LNG) storage tanks for two years.

"Kochi LNG terminal has two LNG storage tanks of nearly 182,000 cubic meters gross capacity each and regasification facilities to regasify 5 million tons per annum LNG," Petronet said in the notice inviting tenders.

LNG is natural gas that is chilled to minus 160 degrees Celsius to liquid state for ease of transportation by ship. LNG is converted back into gaseous state at the import facility (regasification) before being sold to users such as power and fertiliser plants.

"Petronet plans to lease out a part of the storage capacity for a period of about two years initially at Kochi," the notice said.

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