The largest liquefied natural gas buyer of our nation, Petronet LNG Ltd., has planned to lease one of the two storage tanks which are recently put into service in Kochi. As it is not commercially working well for them. Because the pipeline that convey or transport the gas to customers are not in the proper condition to do so. In October and December quarter, the net profit of Petronet has fallen by 57% due to uncapitalised cost of Kochi terminal.
In the third quarter (October – December) of the current financial year it has operated only 5 percent of its total capacity because of its pipeline’s bad condition and to make it commercially more viable Petronet planned to lease it out.
A top official of the company said ,” They have two large footbal field sized tanks for storage at Kochi and they are not using the other one. As the purchasers are absent and the company don’t want to bear the loss. So, they have planned to lease one storage tank of them” and he further said that the company has planned to invite the bids or tenders for leasing one of the storage tanks with in a month.
Officials said, “Storage can be hired or utilised by national or international firm who wants to purchase LNG when the rates are at its lowest level and sell it when rates go high”. Kochi can be used by importers in Japan and Singapore as a point where they can load and reload.