With the State Government's nod to a 50:50 joint venture between Gujarat State Petroleum Corporation Ltd (GSPC) and the Adani Group to develop an LNG import terminal at Mundra, the State's third LNG terminal is expected to be ready in the next three years.
Work to start soon
The joint venture partners are likely to invest an estimated Rs 4,000 crore in the debt-equity ratio of 70:30, a senior official said.
The two partners would kick start work soon on the much-awaited terminal, whose initial capacity to import LNG would be five million tonnes a year (mtpa). It would be completed in 36 months.
This follows the State Government's formal approval to GSPC on Monday to go ahead with the Mundra LNG terminal, for which the Adanis had signed a memorandum of understanding with the State Government during the Vibrant Gujarat event in 2007.
Originally, this LNG was proposed to be set up in a tripartite agreement, with 33 per cent partnership each between GSPC, Essar and the Adanis.
“However, with the decision to locate the terminal at Mundra, Essar had exited from the project as it favoured the terminal to be located at Vadinar, next to its oil refinery in Jamnagar district,” sources told Business Line .
Gujarat currently has two LNG import terminals.
The first terminal was set up by Petronet LNG Ltd at Dahej in Bharuch district for receiving and regasification of imported LNG.
It has a capacity to import 10 mtpa of LNG which is being expanded to 15 mtpa. Besides, Petronet LNG, a joint venture promoted by GAIL (India) Ltd, ONGC, IOCL and BPCL, is also setting up a 5 mtpa terminal at Kochi in Kerala.
The second terminal in Gujarat was set up at Hazira in Surat district by a joint venture of Shell Gas BV and Total Gaz Electricite Holdings France.
A storage and regasification terminal, it is also increasing capacity from 3.5 mtpa to 5 mtpa.
The Hazira LNG terminal was the first to introduce spot LNG supplies into India.
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