Deccan Herald
 
Bangalore, May 6: In Karnataka, buses running on Compressed Natural Gas (CNG) could still be part of a long-fancied vision. However, the next five years might see the vision gaining shape, all on the road. A default spoiler to CNG’s chances in Karnataka - lack of supply sources - could be dealt with at ONGC’s proposed Liquefied Natural Gas (LNG) complex in Mangalore.

According to ONGC sources, the potential of CNG-run buses in Karnataka could gather steam as and when the complex - planned as part of a Special Economic Zone (SEZ) -starts operation. The SEZ, which will also house a much-vaunted mega petrochemical plant, is likely to open in 2010.

Chief Minister H D Kumaaraswamy’s reported meeting with senior ONGC officials last weekend had fuelled the possibilities of CNG-run buses in the State. However, no concrete announcements were made. “Development of the power plant (to come up in the SEZ) as well as supply of CNG to KSRTC and BMTC buses are all linked to the development of the LNG complex,” an ONGC official said.

The LNG complex, which is being built at an estimated cost of Rs 6,200 crore, comprises a regasification plant and extraction plant for C2-C3 components. ONGC is working on tie-ups with international sources for supplying LNG. As soon as the supply arrangements are made, the detailed engineering and other project-related issues will be taken up. On launch, the terminal is also tipped to import close to 12 million tonnes of LNG per annum. The first phase of ONGC’s mega petrochemical plant in the Mangalore SEZ will be integrated with the expansion of the refinery, from the existing capacity of 9.69 MMTPA to 15 MMTPA.
 
The estimated budget for the petrochemical complex is about Rs 10,000 crore. The SEZ also envisages development of an aromatic complex at a cost of Rs 4,900 crore. ONGC and its subsidiary, the Mangalore Refinery and Petrochemicals Ltd., is tipped to spend nearly Rs 35,000 crore.

The Mangalore SEZ Ltd, a Special Purpose Vehicle, was formed in February this year to develop the SEZ with ONGC, Karnataka Industrial Area Development Board,

Kanara Chamber of Commerce and Industry and Infrastructure Leasing and Financial Services Ltd as equity holders. Apart from a petrochemical complex, a LNG regasification plant, a C2-C3 extraction plant and a power plant, the SEZ will feature banking and other services in the zone.