GPPL in talks with Essar, Swan for new gas terminal

Gujarat Pipavav Port Ltd (GPPL), promoted by APM Terminals, has initiated talks with the Essar group and Mumbai-based Swan Energy to form a consortium for setting up a Liquefied Natural Gas (LNG) terminal project at Pipavav. A senior GPPL official confirmed the development on conditions of anonymity. He added that the talks were at a preliminary stage and things were yet to be confirmed.

GPPL has commissioned an internal study for an LNG terminal project, either onshore or floating. As part of the project feasibility, the study will look at pipeline options for the Pipavav port to transport gas from the proposed LNG terminal.

The Essar group did not comment.

Pipavav port has 400 hectares of land and a considerable part of that has been reserved for the LNG project, with allowance for future expansion.

GPPL officials added that the scale of the terminal project and the investments involved were yet to be worked out. The company is considering bringing in equity partners that could provide technology expertise or access to LNG supply.

Essar, along with Gujarat State Petroleum Corporation, was earlier planning to set up an onshore LNG facility at Pipavav.

Swan Energy, which changed its name from Swan Mills mid-December onwards last year, is aiming to set up various infrastructure projects in Gujarat, including power projects, say state government sources.

Essar Group, being diversified into steel, power and oil refining, has a large LNG appetite and has been active in buying spot supplies.

Gujarat currently has two LNG terminals located at Hazira and Dahej and the third one is being built at Mundra by the GSPC-Adani consortium. GSPC is aiming to reach a total capacity of 20 MMTPA at Mundra in a phase-wise manner.