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A memorandum of understanding (MoU) between GAIL (India) Ltd and Paradip Port Trust was signed here today (Saturday), paving the way for the construction of an LNG terminal complete with floating storage and regasification facilities at Paradip port.
S. S. Mishra, Chairman, PPT, and Sanjib Datta, Executive Director, GAIL(I) Ltd, signed the MoU in the presence of Union Shipping Minister G. K. Vasan, Shipping Secretary Dr Viswapati Trivedi and the chairmen of several major ports, among others.
GAIL proposes to set up the first phase facility with a capacity of four million tonnes per annum (4.8 mmtpa in a peak condition) and a storage capacity of 170,000 cubic metres, to be doubled in the second phase. The first phase work will entail an investment of Rs 3,108 crore. PPT will spend Rs 650 crore towards construction of a breakwater and dredging required for the project and GAIL the balance Rs 2,458 crore. Barring unforeseen developments, the project should be ready in four years by 2017.
With the commissioning of the project, Odisha, the Union Shipping Minister said, would be on the world LNG map. He urged both private and public sector companies to develop LNG infrastructure in major ports and exploit the opportunities thrown up by such infrastructure.
The Shipping Secretary said the advantage of a joint venture between a major port and a central PSU was that they both had the same DNA. He hoped that the port capacity would double to 1.2 billion tonnes by the end of the 12th Plan. “Nearly 90 per cent of issues in PPP projects have been satisfactorily resolved,” he said.
The GAIL ED explained why gas would emerge as the major source of energy in the 21st century as compared to coal in the 19th century and oil in 20th century. The commissioning of the Paradip LNG terminal would expedite the laying of his organisation’s proposed gas pipelines between Paradip and Surat and Haldia and Jagdishpur, he added.
The PPT Chairman narrated developments leading to the signing of today’s MOU.
At a separate function, the Union Shipping Minister also handed over a certificate and a cash award of Rs 5,000 each to 17 employees of the Directorate-General of Lighthouses and Lightships, who, while on duty in seven lighthouses on the coast in Odisha during cyclone Phailin, had risked their lives to maintain normal maritime services and navigational aids. Capt A. M. Surej, Director-General of Lighthouses and Lightships, and K. P. Singh, Director, were present.
>santanu.sanyal@thehindu.co.in
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