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Enron Mail |
As promised, a transcript of the CNBC story follows. We don't have the tape
yet, but it is my understanding that it came off well on video. John ---------------------- Forwarded by John Ambler/ENRON_DEVELOPMENT on 07/17/2000 10:16 AM --------------------------- Jimmy Mogal 07/17/2000 09:41 AM To: John Ambler/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Johan Zaayman/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Subject: Transcript of CNBC interview/Metgas In case you want to forward to Mark...... ---------------------- Forwarded by Jimmy Mogal/ENRON_DEVELOPMENT on 17/07/2000 08:09 PM --------------------------- Jimmy Mogal 17/07/2000 07:53 PM To: INDIA TEAM - ENRON cc: Subject: Transcript of CNBC interview/Metgas For those of us who missed the program, foll is a gist: Channel??????????????CNBC, Asia Programme????????India Market Wrap Subject???????????????LNG industry in India Duration?????????????5 minutes Date?????????????????? 14/ 07/ 2000 Journalist????????? Ms. Jaya Mahajan Visuals: aerial view of Dabhol, shots of terminal under construction ? Introduction: Natural gas is emerging as an important alternative fuel for power and fertiliser plants in India. The Indian government is encouraging import of natural gas to cope with?growing depletion of India's natural gas reserves. 13 LNG terminals are being planned in India?- an estimated investment of Rs. 300 billion. But, the demand for LNG depends on gas-based power projects, growth of which has been sluggish. ? The future of LNG in India 13 terminals are currently being planned that can transport 40 million tonnes of LNG per year. Half of these projects are in Maharashtra and Gujarat where five terminals will come up in the next ten years. Petronet - Dahej Shell????? - Hazira Indigas? - Mumbai Enron?? - Dabhol British Gas - Pipavav Of all proposed LNG terminals, it is only at Dabhol that construction of?the 2 million tonne LNG terminal has started. ?The first ship is expected in November, 2001 and gas deliveries?to customers in Mumbai are expected?to start?by mid-2002. Enron will enjoy the first mover advantage, where construction of LNG terminal is half complete. Enron's?main competitor will be Indigas promoted by TEC, Total and Gail which is expected to come up by 2004. The basic engineering design is ready and contracts for storage tanks, jetty and terminal will soon be decided. ? C de Frassinette, MD, Indigas: Infrastructure is required for LNG terminals - we will benefit as?Gail's infrastructure is in place.?In the next ten years, when phase II is?on line, we will be able to market?our fuel (about 6 million tonnes) thanks to the development of the natural gas market and depletion of Bombay High. ? K. Wade Cline, COO Enron India Due to our contractual access to the existing LNG facility at Dabhol, we will be able to share in this and therefore don't have to incur extra costs on LNG tanks, regas facility and fuel landing jetty. All projects need a pipeline to be built from?location to customers - our is only 190 km North of Dabhol to Mumbai?and will service our customers in the Mumbai route. We don't see any disadvantage. ? Voice-over: The success of these projects depends on the cost of construction?and price of gas. Only Petronet (a consortium of Indian oil companies) which expects to begin supplying gas by 2003 has fixed a price - $4.5, per billion tonne unit. This is 20% cheaper than naphtha, the other major fuel currently being used. The price of LNG is?determined by customs duty which, in India, is at over 20%?- the highest anywhere in the world. ? K. Wade Cline We'd like the government to lower duty on LNG?and make it closer to, for example, rates on other infrastructure projects like power plants. ?? ? C de Frassinette In Japan, LNG is not taxed at all. In Korea, there is just 1% customs duty. Japan is the largest importer of LNG, accounting for?60% of? global LNG market. We need to move in this direction. ? Voice-over: Even if LNG were affordable, setting imported terminals is an expensive exercise. Estimated cost of the?5 million tonne Petronet terminal is Rs. 22.5 billion. The project cost of Indigas is Rs.25 billion. Not all terminals will finally come up, but for those that do, there is enough demand for this fuel of the future that is cleaner and greener than others. ? ?
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