(a) whether it is a fact that fertilizer industry is running short of LNG for
running its plants;
(b) if so, the details thereof;
(c) whether the Government are considering importing LNG for its fertilizer
plants to run them smoothly;
(d) if so, the details thereof;
(e) whether any proposal to import LNG has been prepared and sent to the
Government for approval;
(f) if so, the details thereof; and
(g) if not, reasons therefor?
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (DR. CHHATTRA PAL SINGH)
(a) to (g): Fertilizer plants, which use natural gas for feed stock and fuel, are
facing shortage of natural gas because of dwindling domestic gas supplies.
Import of natural gas including liquefied natural gas (LNG) is under Open
General Licence (OGL) and therefore does not require Government approval.
However, the Government has approved the formation of a Joint Venture of
Indian Oil Corporation, Bharat Petroleum Corporation Limited, Oil and Natural
Gas Corporation Limited and Gas Authority of India Limited by the name of
Petronet LNG Limited (PLL). PLL is setting up an LNG terminal at Dahej in
Gujarat for the import of five million tonne per annum of LNG. The terminal is
expected to be commissioned by first quarter of 2004. PLL also plans to set up
an LNG terminal at Kochi for which almost all pre-project activities have been
completed. Further progress will depend on market tie-ups for the gas.
The re-gasified LNG from the Dahej terminal may be available for meeting
the deficit of fertilizer plants also.