Indian LNG import expansion on the cards

Thursday, 10 January 2019

Petronet LNG plans to invest R2,100 crore to expand its Dahej LNG import facility, according to local sources. 

The terminal’s capacity will be increased from 15 mill tonnes per annum to 20 mill tonnes per annum in the next two or three years, according to officials talking with local media.

Of the total, R1,300 crore will be used to expand the Dahej terminal, while R800 crore will be spent on building LNG storage tanks.

Petronet‘s other terminal is located at Kochi and has a capacity of 5 mill tonnes per annum. The company is also building a third terminal, at Gangavaram, Andhra Pradesh.

An investment proposal for the Dahej expansion project was recently submitted to the Gujarat Maritime Board—the regulator for all the non-major ports and maritime activities in Gujarat, a senior Gujarati government official said.

Gujarat expansion

Last October, Indian Prime Minister Narendra Modi inaugurated an LNG terminal project promoted by GSPC LNG, a subsidiary of Gujarat State Petroleum Corp. This project will be the third LNG re-gasification project in the state after Dahej and Shell Gas’ Hazira terminal.

Shapoorji Pallonji group and Swan Energy have also announced plans to set up LNG terminals in Gujarat.

While Petronet’s Dahej terminal has a long-term LNG importing contact with RasGas, and with ExxonMobil for the Kochi Terminal, GAIL’s Dhabol terminal has a 20-year contract with Cheniere Energy.

Hazira LNG has sourced cargoes from 17 liquefaction facilities worldwide. Unlike Dahej, Kochi and Dhabol, Hazira terminal is geared more towards short and mid-term contracts instead of long-term, Care Ratings said.

India is scheduled to add another 27.5 mill tonnes per annum LNG terminal capacity in the next few years, depending on the technical feasibility of the projects. The current regasification facilities are all located on the west coast of the country. With the proposed new plants which will be set up on the east coast of India, the disparity in the supply of LNG should diminish, Care Ratings said in a report.

****Indian Oil Corp is due to open its delayed Ennore LNG receiving terminal, located near Chennai, this month, local media claimed.