GMB explores partners for Gujarat's 4th LNG terminal

Invites RFPs for Rs 4,100 crore terminal project at Jafrabad near Amreli

While Gujarat State Petroleum Corporation (GSPC) is exploring interested partner for its liquefied natural gas (LNG) terminal at Mundra, the state government has initiated steps to set up Gujarat’s fourth LNG terminal at Jafrabad, near Amreli. Gujarat already has two operational LNG terminals each at Hazira and Dahej.

State ports regulator, Gujarat Maritime Board (GMB) has invited comparative bids, (popularly known as SWISS Challenge Route) to develop greenfield LNG port terminal with Floating Storage and Regasification Unit (FSRU) near Jafrabad in Amreli district in Saurashtra.

The project, The All Weather Direct Berthing Port Terminal facility with 2 Breakwaters, will cost around Rs  4150 crore and have combined capacity of 10 million tonnes per annum (MMTPA). The project is to be built through Public Private Partnership mode based on the BOOT Policy and Port Policy of Gujarat.

Notably, Swan Energy Ltd has submitted a proposal for development of the project to government of Gujarat. The state energy and petrochemical department has granted In-Principle approval to the project proposed by SEL in May this year.

“GMB has received a proposal from “Original Project Proponent” (OPP) for the Project. GMB has decided to follow the procedure under section 10 of GID Act, and will give an opportunity to OPP to make his proposal competitive,” the ports authority stated in its notice, issued on its website.

The government has prepared a land use plan for the development of the terminal to meet the future demand of LNG import traffic and security reasons. Total land requirement will be around 87 acres (36 hectares), out of which 74 acres is government land. “The government land will be leased through Gujarat Maritime Board, while private land will be purchased at a mutually acceptable price,” the GMB document said.

Private land will be primarily used for LNG operations, as most of the facility, including access roads and pipelines will be constructed within the shore protection works and backup area will be constructed using capital dredged material.

GMB has invited Request for Proposal (RFP) from global LNG port operators to act as a developer of this Project. GMB has adopted “Single Stage – Three Steps” process which includes Qualification, Technical Bid and Commercial Bid. The last date for submission of RFP is September 16, 2013.