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Row of LNG Terminal Addition at Eastern Shore to Offset LNG Infrastructure Import Constraint.

Flagship oil refiner and marketer Indian Oil and gas utility GAIL have inked a deal with an Adani Group firm for booking capacity at a liquid gas import terminal in Odisha, with the option of taking equity in the project at a later stage. Both the state-run entities are separately pursuing projects for importing gas in ships in the coastal region. Indian Oil is planning a project in Ennore district of Tamil Nadu at eastern shore.

 

Source:  Economic Times

 

SNP Insights

 

Out of total 28.3 MT LNG terminal capacity, eastern shore had only 5 MT capacity at Kochi earlier. New capacity addition at Odisha (Dhamra) & Tamilandu(Ennore)  of 5 MT each will ensure effective  transport of LNG to end consumer of eastern region. Terminal Capacity addition at eastern shore will reduce pipeline infrastructure expense for gas transportation considerably. Along with that LNG import from  country like Australia, Singapore & Malaysia would be considerably easier, if  import terminal is at eastern shore of the country.