The Kochi-Mangaluru pipeline will increase the revenue of Petronet LNG by Rs 180 crore per year for the next 1-2 years, said Vinod Kumar Mishra, Director-Finance of the company. "The Kochi-Mangaluru pipeline is a boon to Petronet LNG," he said.

The Kochi-Mangaluru pipeline was inaugurated by Prime Minister Narendra Modi on Tuesday. The work was given to the LNG terminal of Petronet LNG in Kochi for the 450-km natural gas pipeline between Kochi in Kerala to Mangaluru in Karnataka.

The gas pipeline will ensure supply to domestic as well as commercial establishments across the region.

“This Kochi-Mangaluru pipeline was long-awaited and it was to be commissioned by 2013-2014 but because of various land-related issues, it could not be completed. Finally, it has been done, it is a boon to us because our Kochi terminal – which was being utilised at a low level at 16-17 percent – will enhance to the level of almost 30-35 percent,” Mishra said in an interview with CNBC-TV18.

He expects the utilisation to increase once the city gas distribution network expands further. “City gas distribution projects, whenever they come up in future in the next five years, the utilisation will further enhance,” he said.

“Perhaps, it will further enhance the revenue of the company to the extent of almost Rs 180 crore in the next one-two years,” Mishra said.

In terms of volumes, he said, “At present, we are more than pre-COVID levels. Consumption level in November and October was to the extent of almost 157-160 mmscmd.”

Mishra is expecting more demand from the city gas distribution segment. “We are also expecting more demand from city gas distribution projects in times to come. That is an area which has a lot of potential in the future which will help us increase our consumption,” he said.

For full conversation, watch video...

(Edited by : Niral Sharma)

First Published:Jan 6, 2021 2:32 PM IST