Create enabling environment for use of LNG in Bangalore market

The Kanara Chamber of Commerce and Industry (KCCI) has made an appeal to the Karnataka Government to create an enabling environment for the effective use of LNG (liquefied natural gas) in Bangalore market.

In a letter to the Chief Secretary, Mr P.B. Mahishi, Capt J.P. Menezes, KCCI President, said that Oil and Natural Gas Corporation (ONGC) ? which has entered into a memorandum of understanding with the Karnataka Government and the KCCI for investments in the State - intends to put up an LNG terminal in New Mangalore Port premises for import of around 10 million tonnes per annum (MTPA) of LNG. ONGC also intends to lay a gas pipeline on Mangalore-Hassan-Bangalore-Chennai route using the existing pipeline infrastructure.


If the Karnataka Government takes initiatives to use 2.5 MTPA of gas, it will help provide uninterrupted electricity to households, enterprises and industries in Bangalore. It will provide necessary fuel for public transport systems and private vehicles, helping them to switch over from diesel to LNG. This will also help meet the captive requirements of the State Government utilities and major institutions.

For this, the Karnataka Government should create an enabling environment for the reception of gas and its use in Hassan, Tumkur, and Bangalore rural and urban districts to the extent of 2.5 MTPA.

He urged the Government to convene a high-level meeting at Mangalore for assessing the requirement of infrastructure for the speedy implementation of the gas-handling facility. The Government should make preparatory arrangements with appropriate public private initiatives for the reception of gas at Bangalore.

The Government should make all the comfort arrangements for MRPL-ONGC to make long-term supply arrangements at appropriate pricing from their sources abroad. "We expect speedy and immediate action from the administration as the proposal will not move unless arrangements are made for the entire consumption of gas on a contracted basis," he said.

Welcoming the proposals to supply gas from KG basin to the State, the letter suggested that the gas be received at the border of northern Karnataka and be used for generation of fertilizers in districts there, and for electricity generation and for the manufacture of sponge and pig iron in Bellary district, and for the heating requirements of cement plants in Gulbarga district.

Source: Business Line, Mangalore, January 24, 2007
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