Apr 3, 2012

Lack of skilled manpower hits LNG sector

India's liquefied natural gas sector is facing an acute shortage of trained manpower, even as the energy-starved country races to increase re-gasification capacity to meet surging domestic demand for the natural gas.
According to LNG project consultant Ethical Energy Petrochem Strategies, about 1,000 trained workers are required over the next couple of years for terminal and commercial operations against the current availability of about 500 workers. Close to 250 workers are needed to operate a 5-mmtpa LNG terminal.
"LNG is not an employee-intensive business. However, LNG projects require specific skill sets," said Ethical Energy CEO Dhiren Desai.
Finding experienced hands is proving to be a challenge for most operators as no domestic institute imparts training for LNG operations. This makes them dependent on petrochemical companies, refineries and fertiliser firms for their requirement of trained manpower.
Also, most workers need to be trained abroad, as LNG is relatively new in India. Most of the workforce for the commercial aspect of LNG operations is drawn from city gas distribution companies and power producers.
India, the eight-largest importer of LNG, consumes about 165 mmscmd of natural gas every year, of which about 50 mmscmd has to be imported. These imports are expected to double over the next two to three years as domestic production drops and demand from industry rises. LNG is needed for electricity generation, industries, fertiliser sector and city gas distribution companies.
At present, there are only two LNG terminals operational in the country-Petronet LNG's terminal at Dahej, Gujarat, and Shell's terminal at Hazira, also in Gujarat. Another half a dozen facilities are likely to be commissioned over the next two to five years.
While the LNG projects of IOC, Gujarat State Petroleum Corp (GSPC), SRM Exploration, and Hiranandani are at various stages of development, two terminals at Dabhol and Kochi are about to be commissioned.

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