MEGAPROJECT | Kochi integrated Refineries cum Petrochemicals Complex | LNG Petronet | Megapower Plant

[Malayaali]

Petronet LNG: Steady earnings, capacity hike to pump up show

India's dwindling natural gas production and growing demand will sustain over-utilisation at Petronet LNG's Dahej terminal. Debottlenecking of its existing terminal and a new terminal at Kochi will add further capacity in next couple of years, while the annual increase in regassification charges will ensure profit growth.

Petronet LNG's robust business model coupled with undemanding valuations make it attractive for long-term investors.

BUSINESS

Petronet LNG is India's largest importer of liquefied natural gas (LNG) at its Dahej plant. The company recently expanded the capacity to 10 million tonne per annum (equivalent of 40 million standard cubic meters per day or MMSCMD). The company has a firm supply contract with Qatar's RasGas for 7.5 MTPA for which it has a back-toback sales contract.

It also imports LNG on a spot basis depending on its ability to market the same in domestic market. Similarly, it also imports cargos on behalf of other importers for a fee. The company currently charges Rs 35 per MMBTU as regassification charges, which are set to go up 5% every year in January.

GROWTH DRIVERS

India's domestic natural gas production is dwindling, especially with the KG-D6 block output going down steadily. The East Coast block which was producing at an average rate of 41 MMSCMD in the December 2011 quarter is likely to go down to 36 MMSCMD in the March 2012 quarter and further to 28 MMSCMD in FY13. Petronet LNG operated its Dahej facility at 115% capacity utilisation in the December quarter.

This helped it clock its highest-ever quarterly volumes of 145 trillion BTU or 45 MMSCMD. Non-core sectors (industries excluding power and fertiliser) still find regassified LNG to be a cheaper option when compared to the liquid fuels, which will ensure high capacity utilisation for Petronet even in future. The company's recent 0.6 MTPA deal with GDF Suez will help in this. Petronet is setting up a 5 MTPA LNG import facility in Kochi which will be commissioned by the end of this year. When it is fully functional, the facility will grow total capacity by 50%.

The company also plans to add an additional jetty, which will add 5 MTPA of capacity at Dahej along with debottlenecking and brownfield expansion in FY14. It is also studying the possibility to set up another LNG import facility on the East Coast at Gangavaram. Availability of LNG at reasonable prices on a long term basis has remained a key worry. LNG prices have remained at unreasonably high levels in spite of major LNG export facilities coming up globally.

However, things are likely to change with the US becoming a net exporter and European demand slowing down. Petronet's ability to sign any long-term supply contract could improve visibility to its earnings growth and prove a major trigger for appreciation.

[Malayaali]

India seeks strategic investment ties with Qatar for petro projects

India has offered Qatar stake in some of the major petro projects, including the petrochemicals complex at Dahej in Gujarat, Indian Oil Corporation's (IOC's) LNG project in Ennore, Tamil Nadu, BPCL's petrochemical project in Kochi, petrochemical project in Mangalore and investment opportunity in the Paradip refinery and petrochemical project to further enhance its strategic partnership and ties. These big ticket investment offers were made to Qatar's Emir, Sheikh Hamad bin Khalifa Al Thani during his talks with the Petroleum and Natural Gas Minister Jaipal Reddy.

Bharat Petroleum Corporation Limited (BPCL) has proposed to set up a petrochemical complex at Kochi and is on the look out for an established global petrochemical player as partner. The project is expected to cost around Rs.9,000 crore and BPCL has put up an investment proposal before the Qatar Government for the project. In addition to this, the government has discussed the issue of offering strategic investment partner status to Qatar for the petrochemicals complex being set up by the special purpose vehicles (SPV), ONGC Mangalore Petrochemicals Limited (OMPL). The project is expected to cost around $1.25 billion.

[e_arunsid]

Kochi Refinery aims to be ‘world class,' says official

Directors' board has approved IREP to be completed by 2015

The newly appointed executive director of Kochi Refinery, John Minu Mathew, has opined that the Rs.14,225 crore Integrated Refinery Expansion Project (IREP) will ensure that the Refinery becomes truly world class in size and complexity.

In his message to the employees of the public sector in the company newsletter, the ED said the directors' board had approved (subject to environmental clearance) the IREP to be completed by December 2015. Once this project is through, the Nelson Complexity Factor of the Refinery would improve to 9.6 from the current level of 6.3 and the Specific Energy Consumption to 67 from 84.

The project envisages building capability to process 100 % high sulphur crude oil (the design average crude sulphur content is 2.66 wt%). The 45-year old CDU-1 will be replaced by building a new 10.5 MMTPA CDU, but the other downstream units would have capacities equivalent to the incremental refining capacity of 6 MMTPA. The project would pave way for the BPCL's entry into petrochemical business with a downstream petrochemical complex planned in joint venture with one of the major multinational players in the business. The State government has extended tax concessions for this project, for the first time for such a project.

The year gone by (2011-12) has seen Kochi Refinery surpassing some of its own major performance milestones. A new crude throughput record of 9.55 MMTPA has been set against the previous record of 8.77 MMTPA and the refinery clocked 26.16 million accident-free manhours, the highest ever so far for the public sector.

New challenges
The Executive Director also noted that the year 2012-13 brought with it a new set of challenges. For one, the crude oil throughput target is set at 9.8 MMTPA, that too in a shut down year. Other physical targets would also require ensuring one hundred per cent availability of the plant and machinery throughout the year. The new 220 kV substation will be ready for commissioning this year, he added.

[mohammedirshad06]

State to give land for LNG Powerplant in Puthuvypeen

Government of Kerala and Petronet LNG Limited, promoters of the LNG terminal coming up on Puthuvype island, are learnt to have reached an understanding on land for an LNG-based power generation facility.

Sources here said that the government had identified 50 acres for the project, the original extent requested for by PLL, which proposed setting up a 1,250 mw plant using the advantages of the proposed plant's proximity to the LNG receiving and re-gasification facilities.

Though the proposal for setting up the power plant was made more than two years ago, the project could not go ahead as the land required for the project was not immediately available, technicalities holding up the transfer of land for the project.

However, the State government is learnt to have cleared the differences of opinion on a claim made by a government agency over the land now identified for the power project. Though only about 30 acres have now been cleared for the project, government is making all efforts to clear the remaining 20 acres at the earliest, sources said.

Meanwhile, Cochin Port Trust has received the Union shipping ministry nod for building an exclusive jetty for receiving LPG.

The permission was granted after a meeting recently convened by the Union shipping secretary, sources here said.

The proposal for a dedicated facility for receiving shipment of cooking gas was proposed in 2009 by Indian Oil Corporation. The project was meant to solve the problem of the perennial shortage of LPG in the State.

A State government review of the project in the second half of 2011 had found out that the proposal for the LPG jetty was almost in an abandoned stage. Subsequently, State government engaged Kerala State Industrial Development Corporation as the nodal agency for overseeing the project implementation.

Sources here said that the Cochin Port Trust would build the LPG receiving jetty with financial backing from Indian Oil Corporation.

The new jetty is being built after IOC abandoned the idea of using Cochin Oil Terminal for receiving shipments of LPG. It was earlier proposed that the LPG jetty could be built along the multi-user liquid terminal (MULT), proposed by the Cochin Port Trust. However, the MULT project has been held up for various reasons.

[Malayaali]

BPCL Kochi Refinery targets 99 lakh tonne crude oil refinement

Refined 95.5 lakh tonne last fiscal.


cc: Manorama

[Malayaali]

Kerala, Petronet LNG to sign pact for power project

The Kerala Government and Petronet LNG will sign a contract for setting up a Rs 2,250-crore power plant as part of the LNG terminal at Puthuvype in Kochi.

This will be a combined cycle gas turbine project with a capacity of 356 MW, an official spokesman announced here.

A decision to sign the contract was taken at a high-level meeting chaired by the Chief Minister, Mr Oommen Chandy.

Petronet officials are of the view that ‘cold energy’ from the power plant would add significantly to the State’s energy security.

The project would be completed in 50 months if the 50 acres required were made available. Officials said efforts in this direction were already on.

The contract would be signed only after further rounds of discussions were completed, the spokesman said.

[mohammedirshad06]

Rs 2000 Crore Investment- Petronet Power Plant

Power generated at the LNG-based power plant, proposed to be set up at Puthuvypu, near Kochi, will cost around Rs 7 per unit.

This was broadly agreed upon at a meeting between officials of the Petronet LNG Ltd and Kerala government held in Thiruvananthapuram on Wednesday.

A K Balyal, Petronet MD, told ToI here on Thursday that the Kerala government would undertake a guaranteed purchase of 75% of the power to be generated in the initial phase.

According to KSEB sources, LNG power, albeit costlier than hydel, would be advantageous to the state since Kerala is currently buying power from some private stations at Rs 11 per unit.

The total capacity of the station would be 1050 MW. The first phase of 350 MW and all the basic utilities for the complete project is estimated to cost around Rs 2000 crore.

The power station would be a 50:50 joint venture between Kerala government and Petronet. KSEB will participate in the venture on behalf of the Kerala government. The cost of the land (about 90 acres) to be allocated for the project would be part of the Kerala government's equity share, Dr Balyal said.

He said the MoU for the project is expected to be signed between the Petronet and the State government within a month. The detailed feasibility report would be prepared subsequently.

The normal gestation period for a project of this scale could be around 36 to 41 months. "But if decisions are taken quickly and we are able to launch multiple portions of the work simultaneously we can complete it in 28 months," he said.

[psanthosh]

Chennai, May 18: Looking to charter a liquefied natural gas (LNG) ship on a long-term basis? Book it four years ahead of time. That's what Petronet LNG Ltd is doing.

According to the plan, the company is to commence LNG transportation from Kochi Regasification Terminal between January and June 2016.

However, to achieve that, it has issued a global notification to pre-qualify ship owners and operators to provide an LNG ship.

The owners and operators will be responsible for shipping-related activities — right from loading and unloading.

Mr C.S. Mani, Director (Technical), said that while the plant is ready for commissioning, the full-fledged movement of LNG would commence in 2016 only.

“We need to order now to make sure we have the ship ready by then. It takes such a long time,” he said.

Long-term agreement
Petronet LNG is a joint venture company promoted by Oil and Natural Gas Corporation, Indian Oil Corporation and Bharat Petroleum Corporation. It is setting up a greenfield LNG Regasification Terminal at Kochi in Kerala with an annual capacity of five million tonne.

It has signed a long-term LNG sale and purchase agreement for supply of 1.44 mtpa of LNG from Gorgon, Australia, to Kochi on free-on-board basis for a period of 20 years.

According to Mr Hemant Bhattbhatt, Senior Director, Deloitte in India, typically LNG ships are custom-built and designed for the user's specific requirements if they are to be given on long-term charter.

As such the chartered ships must be getting built and will require time for construction.

Hence, the tie-up four years in advance, he said.

By 2017 it is expected that 175 new ships will need to be added to the current global fleet of 365 to address the demand for LNG transportation.

Currently, only 70 are on order and given the generally depressed shipping market conditions and a degree of scepticism around the ‘bubble-like growth' in demand for LNG carriers, further orders for about 100 more ships are difficult to materialise. Hence a supply shortage is anticipated and this could well be influencing the decision to tie-up the ships four years ahead.

http://www.thehindubusinessline.com/...cle3433108.ece

[psanthosh]

Kochi, May 21: The Southern Railway's Thiruvananthapuram Division has started transporting bitumen by rakes as part of the consignment from BPCL's Kochi Refinery to Bhutan.

The service, flagged off from here, is as per an MoU signed between the public sector oil company and the Bhutan Government for supply of bitumen for one year.

The cargo is meant for road-laying in Bhutan.

This is the first consignment of 12,600 barrels of bitumen and the Railway will move three rakes a month. The cargo movement assumes significance for BPCL-KR as it is the first time it is moving the product by rail and exporting it too.

Each train will consist of 42 wagons and the Railway will generate a revenue of Rs 91 lakh as freight charges from each service, Mr George John, Area Manager, Southern Railway, Ernakulam, told Business Line.

‘Kairali Black'
The final destination of the train service is Falakatta in West Bengal and, from there, the consignment will be moved by trucks to the unloading point, he said, adding that the service will be in full swing after undertaking the necessary infrastructure developments at the loading point, including building a platform.

The Railways will also make round-the-clock arrangements at the loading point, he said.

He termed the service the first international contract for the Railways, which expects to generate more revenues in the coming years.

The Railways christened the service Kairali Black, which extends the concept of Kairali Queen, a dream project of the Thiruvananthapuram Division. Mr Rajesh Agarwal, Divisional Railway Manager, has taken the initiative for this project, meant to showcase Kerala brand products such as spices, cashew and rubber in north Indian markets.

Petro products, coal
According to Mr John, the Thiruvananthapuram Division is coordinating with government agencies such as the Spices Board, the Coir Board and various transport agencies to move products to different markets, either through wagons or containers. Besides, the division is also transporting petroleum products from BPCL-KR to various parts of the State. An average 80-90 rakes per month move products to upcountry destinations also.

The Railways is also engaged in moving imported fertilisers and cement from Kochi Port to many manufacturing units. Coal movement, which was suspended almost a year and a half back, is expected to re-start shortly, he added.

http://www.thehindubusinessline.com/...cle3442756.ece

[Malayaali]

GAIL plans LNG line to Kochi Refinery, FACT

Public sector GAIL India Ltd is planning to lay a regassified LNG (Liquefied Natural Gas) pipeline from the upcoming Petronet LNG project over a distance of 32.4 km from Puthuvype to the Kochi Refinery premises in Ambalamugal. The dedicated pipeline, which will be a spur (or feeder) line from GAIL's main gas pipeline, will require estimated investments of Rs 320 crore and is intended to serve as a fuel link for Kochi Refinery, FACT (Fertilizers and Chemicals Travancore Ltd) and Hindustan Organic Chemicals Ltd (HOCL), sources aware of the project plan said. It is understood that the proposed pipeline will have a capacity of 20 Million Metric Standard Cubic Meter Per Day (MMSCMD). "The planned pipeline will constitute a part of GAIL's dedicated supplementary gas infrastructure to the main gas trunk pipeline it is currently working on," sources said.

The pipeline infrastructure will be laid out in two segments - a pipeline of 30-inch diameter from Puthuvype to FACT's premises in Udyogamandal near Kochi, and a second 18-inch section of pipeline from Udyogamandal to Kochi Refinery's Ambalamugal premises. "The first section which will terminate at FACT will be extended to HOCL. The project will, thereby, serve as a cost-effective fuel link to all three organizations," sources said. GAIL is currently in the process of laying gas trunk lines on the Kochi-Bangalore and Kochi-Mangalore routes while simultaneously working on setting up its 5- Million Metric Tonnes Per Annum (MMTPA) LNG terminal at Puthuvype in Kochi by Petronet LNG at an estimated outlay of Rs 4,000 crore. When completed, this will be India's fourth LNG terminal and the first in South India.

The proposed Kochi-Koottanad-Bangalore-Mangalore pipeline will pass through Kerala, Karnataka and Tamil Nadu. "We had faced some local opposition to the placement of the pipeline -- from the co-operative medical college, FACT and other parties -- but have surmounted these glitches," a government official added.

Among associated projects, a 120-km pipeline is planned under the sea from Puthuvype to Kayamkulam to provide gas to an NTPC unit there. Plans are afoot to transport the gas to Thiruvananthapuram as well. The main gas pipeline from the terminal will have a number of spur lines laid to service the feed requirements of various industries and projects GAIL has signed up with various public sector bodies as part of developing a natural gas infrastructure for Kerala.

GAIL Gas Ltd has entered into a distribution agreement with Kerala State Industrial Development Corp to form Kerala Gail Gas Ltd (KGGL), a joint venture, to take up projects such as city gas distribution, setting up of CNG stations for KSRTC buses, establishment of a Gas Training Institute, laying of spur lines from GAIL's main pipeline, and setting up small gas-based small power generating plants, among others. Investments for the KGGL project are estimated at Rs 2,000 crore.

[vjkrishn]

LNG TERMINAL

[Malayaali]

Tug boats arrive early for operations at LNG terminal

The four tugs that have arrived for the LNG terminal at Kochi early this week at the Kochi harbour.

With work on the LNG terminal nearing completion and the first vessel carrying natural gas expected here by the end of October, four tugs have arrived at the Kochi waters for services at the terminal.

The tugs that have arrived here this week are Ocean Elite, Ocean Perfect, Ocean Pioneer and Ocean Enterprises, all belong to Ocean Sparkle and have arrived here from Goa and Singapore, sources said.

They will be used to guide ships into the LNG terminal. They will be arriving here to complete the formalities with the Customs authorities, sources added. They said that the tugs were expected here in the first week of June but had arrived early.

BIDS INVITED

The LNG terminal project in Kochi has is taking its final shape and in early May Petronet LNG had invited long-term bids from ship owners for transport of natural gas to Kochi. The bids were to transport gas from the Exxon Mobil's Gorgon project in Australia with which the PLL had signed a deal to purchase 1.44 million tonnes of gas.

Kochi is among the first LNG terminals planned in the country and the second to be operated by Petronet LNG after the Dahej terminal in Gujarat. The PLL has signed an agreement with Gangavaram Port Limited in Andhra Pradesh for developing a terminal on the east coast.

The PLL has also proposed setting up a gas-based power generation facility on Puthuvype island, close to the LNG terminal.

[Prasanth_KCV]

Originally Posted by vjkrishn

LNG TERMINAL

Awesome pics vjkrishn

[Malayaali]

UK-based LP Chemicals to partner BPCL for Kochi Petrochemical plant

State-run Bharat Petroleum Corporation Limited (BPCL) has finalised a joint venture (JV) agreement with UK-based LP Chemicals for petrochemical business. BPCL is likely to hold 49 per cent in the venture, with the British company holding a majority 51 per cent.

The JV would invest about Rs 5,000 crore in the project and have a 70:30 debt equity ratio. LP Chemicals may bring in Rs 1,500 crore. BPCL plans to spend Rs 40,000 crore in the next five years to set up a petrochemical plant at the Kochi refinery to produce niche products, expand the capacity of existing refineries, gas marketing and exploration and production.

“We will sign the memorandum of association shortly. After this, we will have to do a feasibility report and later a company will be formed. We should be able to put things in place by early next year,” said a senior BPCL executive, on condition of anonymity.

The executive said the company would integrate the expansion of its Kochi refinery and construction of its petchem plant. The deadline for both projects has been set for 2015. The country’s second-biggest state-run refiner would expand the Kochi refinery by 63 per cent to process cheaper, high-sulphur crude to improve margins and products.

In March, it had said it would invest Rs 14,225 crore in the expansion and upgradation project, which would see the refinery processing 310,000 barrels per day (bpd), clearance for the project is expected in the latter half of 2012.

It had also said it plans to produce polymer-grade propylene from the project which would be used as a feedstock for a series of niche petrochemicals.

The executive said the company was looking at producing 500,000 tonnes of propylene derivatives yearly, which are imported at present. “Our partner is a licensor of the speciality chemical that we are planning to produce,” he added. BPCL is engaged in talks with the Kerala government for concession on the investment in the planned petrochemical unit, the official added.

LP Chemicals, headquartered in Winsford off Cheshire, manufactures and distributes laboratory chemicals and veterinary chemicals to customer specification.

[Malayaali]

Bharat Petroleum Corporation invests Rs 75 crore in refinery substation

Bharat Petroleum Corporation Ltd (BPCL) has spent Rs 75 crore to set up a 22 kV substation on the premises of its subsidiary Kochi Refinery at Ambalamugal near Kochi. The substation will be inaugurated by state power minister Aryadan Mohammed on Tuesday. State minister of fisheries, excise & ports K Babu will be present at the inaugural function.

BPCL said in a statement that the substation will cater to the additional power requirements of Kochi Refinery and also pave the way for setting up a 110 kV substation which is being envisaged by the Kerala State Electricity Board (KSEB) in the Kochi Refinery land itself.

"This will contribute to KSEB's capability to maintain stable and reliable power in the area and support the upcoming integrated refinery expansion project of BPCL Kochi Refinery, a petrochemical joint venture of BPCL, as well as Petrochemical Park being planned by the state government. Moreover, this will directly increase the power reliability in the Kalamassery industrial area and benefit domestic customers," the release stated.

With the commissioning of the new substation, Kochi Refinery will become the first extra high voltage consumer of KSEB at the 220 kV transmission level, BPCL said.

[psanthosh]

Minister for Electricity and Transport Aryadan Mohammed will inaugurate a 220-kV substation on the BPCL's Kochi Refinery premises at Ambalamugal, near here, on Tuesday, said a press release. The substation has been built at a cost of Rs. 75 crore as the BPCL-Kochi Refinery becomes the first extra high voltage consumer serviced by the Kerala State Electricity Board. The Board is also planning to set up an 110-kV substation within the refinery premises soon.

Support for complex
The new facilities will support the proposed petro-chemicals complex being planned by the BPCL. Besides, the new facility will improve the power reliability of Kalamassery industrial area.

The inauguration of the new substation is scheduled for 4 p.m. at the Ambalamugal premises of the refinery. Minister for Excise K. Babu will preside over the function.

http://www.thehindu.com/news/cities/...cle3489421.ece

[Prasanth_KCV]

Good news, so companies from UK will invest in Metro Rail and Petrochemical project in Kochi. Great going Kochi.

Originally Posted by Malayaali

UK-based LP Chemicals to partner BPCL for Kochi Petrochemical plant

[mohammedirshad06]

Another Power Plant planned in Kochi

I guess, Kochi is also going to become POWER CAPITAL of Kerala.....

The Kerala government is planning a 300-MW power plant using petcoke, to be produced from BPCL's Kochi Refinery after the completion of the proposed Integrated Refinery Expansion Project (IREP), said state minister for power & transport Aryadan Mohammed on Tuesday.

Mohammed was inaugurating a 220-kV substation at the Kochi Refinery premises at a function presided over by minister of fisheries, excise & ports K Babu. Babu urged the public to extent all cooperation to the upcoming development activities at Kochi Refinery

Kunnathunadu MLA V P Sajeendran officially handed over the sub-station to M Muhammed Ali Rawther, member (transmission & generation operation), Kerala State Electricity Board (KSEB).

Built at a cost of around Rs 75 crore by BPCL, the new substation is set to revitalize the electrical transmission network of KSEB and enhance the reliability of power in Kochi, said John Minu Mathew, executive director, BPCL Kochi Refinery. Built at a cost of around Rs 75 crore by BPCL, the sub-station will cater to the additional power requirements of Kochi Refinery. It was conceived, developed and built by BPCL Kochi Refinery with the support of KSEB. The various components of the sub-station include HV breakers, isolators and two power transformers of 50 MVA capacity each.

A control room with the latest version of SMART communicative numerical relays has been set up for the protection of the electrics of the entire sub-station and transmission line.

The substation will also pave the way for setting up of a 110 kV substation which is being envisaged by KSEB on the Kochi Refinery land, he said.

[Malayaali]

Good news

[Arunz]

- 14,250 Cr expansion in Kochi
- capacity to be increased from 95lakh to 1.55 Cr tmt
- Kochi to be the first city to get gas city project(gas to home)
- target completion by 2015

mathrubhumi.com