CCEA gives nod for setting up of port and Re-gasification Facility for LNG at Puthuvypeen in Cochin Port

The Cabinet Committee on Economic Affairs today gave its approval for setting up of Port and Re-gasification facilities for Liquefied natural Gas (LNG) at Puthuvypeen in Cochin Port, on captive basis.

The project will be funded and executed by Petronet LNG Ltd, (PLL) at an estimated cost of Rs.3195 crore. The project envisages facilities for handling LNG at Cochin Port with the capacity of 2.50 million metric tones per annum (MMTPA) expandable to 5.0 MMTPA.

The project will enable Cochin Port to earn revenues from land lease rentals, vessel related charges and waterfront royalty. It will enable PLL to market LNG in the southern part of the country. It will enable to downstream industries of fertilizer, power, textile and foundries to benefit from using LNG as a power source compared to other expensive feedstock such as Naptha thereby reducing the cost of production.

Source : Equity Bulls

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