Shipping Corporation of India (SCI), which took over the management of Dabhol LNG terminal recently, sees great growth potential in LNG sector.
For the public sector shipping company, Dabhol is the first contract for managing an LNG terminal, though it has been operating LNG tankers for the past few years.
Eyes similar opportunities
“We will look for similar opportunities in the LNG sector. SCI has expertise in operating LNG vessels. Now, with the starting of the Dabhol, we hope to take more such projects,” said Capt. Sunil Thapar, Director, Bulk Carrier and Tankers, SCI.
The contract for providing port and marine services to the dedicated Dabhol re-gasification terminal, owned by the Ratnagiri Gas and Power Company, has been awarded to SCI for three years. Ratnagiri Gas, a joint venture between GAIL and NTPC, was set up to take over the erstwhile Enron's power project at Dabhol.
The first LNG vessel, berthed on April 4, is currently offloading gas. Three more vessels are expected to bring in cargo before the monsoon, said Capt Thapar. The terminal is expected to handle about two million tonnes of LNG this year.
Dabhol is the third LNG terminal in the country.
The other two are in Gujarat – Dahej terminal of Petronet and Hazira terminal of Shell. The fourth terminal is being set up by Petronet LNG at Kochi.
More terminals and re-gasification facilities are expected to come up other ports in the five years.
Thrust area
The Dabhol experience will help SCI bid for other projects. According to reports, new LNG terminals are expected to come up in the east coast of India.
SCI, which identified LNG transportation as a thrust area, partly own three LNG tankers. Two of them are operated by it. SCI is the only company operating LNG vessels. All three vessels are on 25-year contracts with Petronet LNG. Currently, LNG is the only sector where freight rates remain strong. In all other sectors, rates have been ruling weak for more than a year due to excess capacity.