India News: Shell LNG terminal to be commissioned by September
23-February-2004
keralanext.com
New Delhi, Shell India is hopeful of commissioning its 2.5 million tonnes LNG terminal at Hazira in Gujarat by September and begin marketing the gas by yearend.
"Our LNG (liquefied natural gas) terminal at Hazira is 70 percent complete and we expect to commission it and bring the first parcel of shipment by September or early October," Vikram Singh Mehta, chairman of the Shell Group of companies in India, said here Monday on the sidelines of an energy conference.
The Indian subsidiary of Dutch energy major would be sourcing gas from various sources for its LNG terminal, the second being set up in Gujarat after the recently commissioned Petronet LNG's terminal at Dahej.
Together, the two LNG terminals are expected to considerably bridge India's shortfall in domestic gas supplies.
While stating that LNG would be providing a cheaper alternative at $4.0-4.5 per million British Thermal Units (BTU) to other liquid petroleum fuels like naphtha and liquefied petroleum gas (LPG) available at $7.0-9.0 million BTU, Mehta declined to state at what price Shell would be marketing the gas to consumers.
"The price we would negotiate will depend on consumers, competition, alternatives, location and quantity. The variables will go into deciding on the price," Mehta said.
"We recognise that there is a limit to the price consumers will pay," he said, adding that the company was already negotiating with a number of buyers.
Indo-Asian News Service |
