GAIL (India) Ltd, the largest state-owned gas processing and distribution company, proposes to set up an LNG terminal, most probably offshore, at Paradip port.

An MoU in this regard between GAIL and Paradip Port Trust is to be signed shortly. The boards of directors of both GAIL and PPT have cleared the proposal, it is learnt.

The procedural formalities are being worked out.

Ministry nod

When contacted, sources close to the Shipping Ministry confirmed the development without divulging the details. Inquiries reveal that the capacity of the terminal in the first phase is likely to be around four million tonnes, to be doubled in the second phase. GAIL is already working on the Surat-Paradip pipeline project.

The 1,550-km long pipeline network with the capacity of 60 million standard cubic metres per day (mscmd) is estimated to cost Rs 9,000 crore and will link Mora (Gujarat) on the west with Paradip (Odisha) on the east after passing through Maharashtra and Chhattisgarh.

Prized asset

The project is believed to have already become a prized asset with several companies both in the private and public sector having evinced interest in acquiring stake in the joint venture to be formed by GAIL.

Meanwhile, the Indian Oil Corporation’s plan to have an LNG terminal at Dhamra port is still to make much headway.

The five million tonnes per annum capacity terminal, estimated to cost Rs 5,000 crore, will be set up in the second phase for which land is yet to be obtained and environment clearance awaited.

However, IOC has signed an MoU with Odisha Industrial Infrastructure Development Corporation, a State government agency, for distribution of natural gas and city gas.

> santanu.sanyal@thehindu.co.in

Related Topics