G.K. Nair

Kochi, Nov. 15The delay in setting up of the Petronet LNG Ltd (PLL) terminal here, which was proposed to be established along with its Dahej terminal in Gujarat in 1999 -2000, has pushed up the cost by 30-40 per cent now from that of Dahej’s first-phase expenses.

Speaking to Business Line on Wednesday, Mr P. Dasgupta, PLL Managing Director, said that the first phase of the Dahej terminal was completed at Rs 1,950 crore ($500 million) while the cost of the Kochi terminal would be higher by 30 to 40 per cent at around Rs 2,800 crore ($700 million).

The Letter of Intent (LoI) would be issued by November 30 or the first week of December and the rates are being finalised now, he said.

Awarding of EPC contract to the Japanese company, IHI, would take place after concluding the concession agreement with the Cochin Port Trust (CPT). “We hope that everything would be ready and in place by December 15,” he said.

Union Ministry of Shipping is understood to have sent the concession agreement to the Union Cabinet for approval. “Once we get the communication that it has been approved from the concerned authorities, the PLL would award the EPC contract to IHI as it is a pre-requisite for the company to award the engineering and shipping contracts,” he said.

“I am hopeful that by December 15 the contract could be given to the Japanese company,” he said. It would take 39 months to complete the terminal and thus it is expected to become operational by mid-2011

The agreement would cover port access and wharfage charges.

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