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GSPC’s Mundra LNG Terminal By 2016

  • Gujarat State Petroleum Corporation (GSPC) has targeted commissioning five million tonnes liquefied natural gas (LNG) terminal at Mundra in 2016, Gujarat principal secretary D J Pandian told reporters here. The Rs 4,000 crore terminal was earlier expected to be operational by 2014.“Some preliminary work for the project has started… Site has been identified. It is planned to be commissioned in 2015-16,” Pandian added.

  • The LNG terminal is designed to have two storage tanks. The terminal will have LNG receiving, re-gasification and gas evacuation facilities. The front-end engineering and design (FEED) contract has been awarded to Belgium-based Tractebel Engineering, according to the company website.

  • “Now GSPC will go for the detailed project report (DPR) and then issue the EPC (engineering, procurement and construction) contract in six months to one year’s time,” Pandian said.At present, Gujarat-based GSPC holds 50 per cent stake in the project. Also, Adani Group holds 25 per cent. Ruias’ promoted Essar group has earlier shown interest to share 25 per cent equity but later withdrew from the proposed transaction. Pandian indicated that getting a third partner is not tough and many players have shown interest to buy footprint in LNG business.

  • “We are not worried about it, there is lot of interest. In next six to twelve months, we will look for third partner after completing a certain level of work,” said Pandian.He also added, “There is lot of interest... Torrent and many others are there but somebody should take the lead.”At present, there are two operational LNG terminals in Gujarat operated by Shell and Petronet LNG. Demand for LNG is increasing as gas output from RIL-operated KG D6 falls.

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