Petronet Project Petronet LNG Limited (PLL or the company) was established in 1998 to import liquefied natural gas (LNG), build and operate the related terminals and regasification facilities, and sell natural gas to distribution companies to meet Indias rapidly-growing energy needs. PLL currently has one 5 MMTPA operational LNG terminal and regasification facility (the Terminal) at Dahej, Gujarat, India, which was commissioned in April 2004. Regasified LNG (RLNG) from the Terminal is sold to Gas Authority of India Limited (GAIL), Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Limited (BPCL) (the Offtakers), which is then sold by the Offtakers to end-consumers (mainly comprising power producers, fertilizer manufacturers and industrial units) in the region. The Terminal is connected to two main high pressure gas transmission networks currently in operation, the Hazira-Bijapur-Jagdishpur (HBJ) gas pipeline owned by GAIL and the Gujarat Gas Grid owned by Gujarat State Petronet Limited (GSPL) and connected via GAIL pipeline near PLL terminal. The work related to direct connection of GSPL line with PLLs facility is underway. RLNG is transported through these networks under gas transportation agreements entered into between the Offtakers and network owners.  - PLL plans to:  - construct an additional regasification line, with its associated LNG storage tanks and if required a second jetty, to expand the capacity of the existing terminal at Dahej from the present 5 MMTPA to 10 MMTPA; and  - construct a greenfield 2.5 MMTPA LNG terminal (with provision for capacity expansion to 5 MMTPA) within Cochin Port area, at Kochi, in Kerala, both in India.   The project involves:   - at Dahej, installation of additional facilities within the existing terminal premises including 2 x 160,000 m3 gross capacity LNG storage tanks; 8 shell and tube vaporizers (STVs);  - 2 submerged combustion vaporizers (SCVs); - 2 x 7.6 MW (ISO RATING) gas turbine generators (GTGs); and  - possibly a 5th 160,000 m3 gross capacity LNG storage tank and a second jetty (including a second LNG unloading system) if required, with doubling of the LNG tanker calls at the Dahej terminal from the present 80 tankers per year to 160 tankers per year; and  - at Kochi, construction of: LNG unloading jetty; dredging of basin;  - LNG unloading facilities including arms, pipelines and trestle for the pipeline; - 2 x 155,000 m3 LNG storage tanks with provision for 3rd tank; - LNG re-gasification system (2.5 mtpa capacity); - plant utilities including 3 x 8 MW open cycle gas turbine, 6-7 MW grid electricity system, fresh water system, domestic and process waste water treatment system, compressed air, nitrogen and fire fighting system.   The principal associated facility, on account of the project, is the proposed RLNG transmission line from the LNG terminal to Coimbatore and Mangalore in Tamil Nadu and Karnataka, respectively, which will be laid, operated and maintained by GAIL.  The company has approached IFC for a corporate loan to fund its expansion program. PLL is the central player in the Indian LNG scene, already supplying today approximately 20% of the natural gas consumed in India. Through the project, PLL will increase this contribution to 10 MMTPA by 2011 which could provide possibly 25% of Indias gas requirements by that time.   These features impart unusually significant development impacts to the IFC project that will be achieved through:   - increasing the supply of LNG as premium fuel in the Indias energy mix that will stimulate the rationalization of inter-fuels pricing;  - supporting local sponsors to consolidate a key new technology that will provide a model for other LNG terminals to be developed in future; - substitution of a wide range of industrial fossil fuels (naphtha, fuel oil, coal) by LNG that will result in a reduction in harmful environmental and GHG emissions;  - reducing energy costs for industry through displacement of imported petroleum fuels that are more expensive that LNG; - contributing to the introduction of  piped natural gas in several cities where residential consumers will benefit from increased convenience of piped gas over bottled LPG;  - contributing to the introduction of compressed natural gas in several cities that will replace conventional automotive fuels so reducing in-city pollution and providing financial savings for consumers;  - reducing the level of unserved energy in India and contributing to economic growth and government tax revenues;  - creating locally filled jobs during construction and permanent jobs during the operational phase.