GSPC, Adani setting up LNG import terminal in Mundra

Adani Group and Gujarat State Petroleum Corp plan to set up an LNG import terminal in Mundra’s special economic zone (SEZ) by December 2016.

GSPC LNG’s proposal for a 5 million tons a year LNG terminal, with storage and regasification facilities, received the approval of Commerce Ministry’s Board of Approvals. Project will be developed with Adani Group.

An official was cited by the Financial Express saying, “By becoming co-developer, the project will now be entitled to duty-free imports which will help cut costs down by Rs 700-800 crore from the previous estimate of Rs 5,200 crore.”

Developers are required to sell a portion of imported LNG within the SEZ and are in discussions with ONGC to sell 1.1 million tons of LNG to their unit in Dahej and further 1.3 million tons to its Mangalore unit. Another 1.4 million tons should be sold to Torrent Energy’s power plant in Dahej SEZ, reports the Financial Express.

25 percent of the stake in the project is expected to be bought by India Gas Solutions, a JV between RIL, BP, ONGC and OIC.

LNG World News Staff, August 11, 2014; Image: GSPC LNG