Oilmin notifies norms for LNG terminal registration

Nov 17 2012, 02:45 IST
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SummaryThe petroleum and natural gas ministry on Friday notified the guidelines on registration of liquefied natural gas terminals to expedite development of the domestic gas market, which faces a wide gap between demand and indigenous production of the green fuel.

The petroleum and natural gas ministry on Friday notified the guidelines on registration of liquefied natural gas (LNG) terminals to expedite development of the domestic gas market, which faces a wide gap between demand and indigenous production of the green fuel.

The policy is likely to dictate reserving 20% of terminal capacity for third parties under the ‘common carrier principle’, common carriers being third parties that might need to use services of the terminal. The minimum project size could be put at 0.5 million tonne per annum.

A company wishing to set up an LNG terminal has to furnish a bank guarantee for an amount equal to 1% of the estimated project cost of the LNG terminal or Rs 25 crore, whichever is less, the ministry statement said.

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