KCCI urges Pradhan to supply LNG for Karnataka through Coastal route

MANGALURU: Kanara Chamber of Commerce and Industry (KCCI) has urged union minister of state for petroleum and natural gas (independent charge) Dharmendra Pradhan to arrange LNG for Karnataka through the coastal route. The chamber reminded the minister during his recent visit to the city that the proposal of setting up of a LNG Terminal at NMPT has pending for over a decade.Karnataka has no energy resources of its own and hence requires special attention.
Nigam B Vasani, president of KCCI in a memorandum submitted to Pradhan requested him to expedite coal based gas projects in Chhattisgarh, Tamil Nadu, Andhra Pradesh, Madhya Pradesh, Bihar, West Bengal, Uttar Pradesh and Orissa so that gas requirement of those regions are made effectively from coal bed reducing dependence on LNG/LPG. Natural Gas is very expensive in West Asia but very cheap in USA and Canada, the Chamber stated in its representation.
This imbalance has to be addressed to achieve reasonable costing of LNG. There is ready demand for over 5 million metric tonnes of LNG in the vicinity for Karnataka, KCCI said, adding that of this projected demand, 2.5 million tonnes of LNG will be required in Dakshina Kannada and Udupi districts alone. He urged the minister to sanction a floating storage regasification unit (FSRU) at New Mangalore Port to handle LNG, which are transported on bulk LNG vessels.
In sanctioning the FSRU, the LNG import requirements for the next 25 years should be considered. The economic justification is already established, he said, adding ‘Methane Rich’ LNG should be encouraged and efforts made to get about 80% Methane (by weight). Methane can be used as feed stock for fertilizers and clean power, with CNG for vehicle use subsequently. Imported rich LNG also provides 20% LPG (by weight), he said requesting Pradhan to consider the same.