November 21, 2008

Adani GSPC Essar consortium plans LNG terminal at Mundra

It is reported that a consortium of Adani group, Gujarat State Petroleum Corporation and Essar Oil is planning to spend INR 10,000 crore to build a liquefied natural gas regasification terminal at Mundra in Gujarat. The 10 million tonnes per annum terminal is likely to come up alongside the Mundra port and facilitate the movement of LNG ships into the terminal.

Mr Rajeev Sharma CEO of Adani Group said that an announcement in this regard is likely soon. He added that “We are still in the process of working out how much stake each of the companies will hold in the project. We are talking to various countries in the Gulf region.”

Mr Sharma said that 2009 would be a good time to seal long term LNG contracts as there was likely to be spare supply in the global markets then, with a few gas liquefaction plants coming up across the world. He added that “The Mundra terminal is likely to be completed by 2012-13.”

Petronet LNG is also expanding is existing 5 million tonnes per annum terminal at Dahej to 10 million tonnes per annum, while Shell is expanding its terminal to 3.5 million tonnes per annum from 2.5 million tonnes per annum and plans to reach a final capacity of 5 million tonnes per annum. Indian Oil Corporation also plans to set up an LNG regasification terminal at Ennore in Tamil Nadu.