| The Adani group has decided to set up the country's first toll-based LNG receiving and regasification terminal at the Adani Special Economic Zone at the Munda port in Kutch district.
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| The terminal would be the first of its kind in India where the Adani group will not tie up for the supply with any LNG supplier but will create the facility which will be offered to the consumers on fixed charges.
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| The LNG terminal proposed to be set up in the SEZ would cost Adani group over Rs 1500 crore as compared to a conventional one which would cost anything over Rs 3000 crore.
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| This is because the company already has infrastructure ready in the SEZ, Gautam Adani, chairman, Adani group, told Business Standard. The Adani group has tieup proposals from HPCL and Gujarat State Petroleum Corporation (GSPC) for the supply and other infrastructure required for the proposed LNG terminal.
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| GSPCL is already working on a pipeline network in the Saurashtra region with the nearest connectivity available at Morbi city with the pottery business, said Adani.
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| "Since we have the pipeline network available just next door, it makes perfect sense to have an LNG terminal at the Mundra port as it would help us to evacuate the natural gas from the port directly to the customers," said Adani.
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| Although the natural gas supply network is almost ready in the state, the LNG availability is a major issue, acknowledged Adani.
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| "Natural gas availability is an issue worldwide and so we are working on a model where we won't go for tie up for gas supply from any of the existing suppliers from Middle East or any other place," said Adani.
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| However since there is increasing demand for natural gas in the country there would be enough opportunity for toll based LNG project, said Adani.
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| "We will set up the import terminal with storage tanks and regasification facility and than offer it on toll or fixed charges to importers or suppliers as and when they want to use it on consignment basis," said Gautam Adani.
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| Adani group LNG terminal would be somewhere close to the facility created by Shell at Hazira in south Gujarat where it has not tied up for long term supply with anyone.
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| However, the difference between the two is Shell has its own natural gas liquefaction facility all over the world while for Adani group this is just an entry into natural gas business.
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| Shell has taken a conscious decision not to go for any long term supply tie up as worldwide Shell LNG would fetch much more than an Indian buyer would offer to it.
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| Adani group's LNG terminal would become the third one in the state after Petronet LNG's terminal at Dahej near Bharuch in South Gujarat and Shell terminal at Hazira further down south in the state. |
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