OST Business Bureau
Bhubaneswar, Oct 26:
Paradip Port Trust (PPT) and Gas Authority of India Limited (GAIL) today signed a Memorandum of Understanding (MoU0 for the setting up of an liquefied natural gas (LNG) terminal at Paradip port at a cost of Rs 3, 108 crores.
Work on the project, which will have a capacity of 5 million tonnes (MT), will be completed by 2017.
The MoU was signed by PPT Chariman Sudhansu Shekahar Mishra and GAIL Executive Director Sanjeev Datta in the presence of Union Shipping minister GK Vasan.
Speaking on the occasion, Vasan said the completion of the project will put Odisha on the world LNG map heralding a new era in the industrial development and employment generation and economic upliftment of the state and nation. He urged other PSUs and private organizations to come forward to develop LNG infrastructure in major ports, which has adequate facilities and huge potential to serve them all in an efficient and effective way.
PPT Chairman Sudhanshu Mishra said the terminal would cater to the needs of fertilisers units in eastern and central India and create plenty of employment opportunities.
As part of capacity augmentation programme of Paradip Port, it has been proposed to construct an offshore breakwater to improve navigability of cape size vessels in the approach and entrance channel and simultaneously add port capacity by construction of LNG regasification terminal. GAIL having the authorization of laying Jagdishpur – Haldia and Surat – Paradip LNG pipeline has planned to set up the Floating Storage and Regasification Unit (FSRU) in Paradip Port.
GAIL envisage to set up the project with a send-out capacity of 4 MMPTA (4.8 MMTPA in peak conditions) in Phase I with a storage capacity of 170,000 cubic meter. This will entail a total investment of Rs. 3108 crore out of which Paradip Port would invest Rs. 650 crores in breakwater & dredging and balance Rs. 2458 crores will be invested by GAIL. Considering long term potential of the market along the east coast, it is likely that Phase II of the project will also have an additional capacity of 4.0 MMTPA (peak – 4.8 MMTPA), which will make the overall terminal capacity as 8.0 – 10.0 MMTPA. The next phase of the project can either be onshore or offshore.