GSPC to commission 5-mn tonne LNG terminal in 2015-16

Gujarat State Petroleum Corporation (GSPC) plans to commission liquefied natural gas terminal with a capacity of 5 million tonne per annum at Mundra by 2015-16, a top state government official said today.

"Some preliminary work for the project has started, site has been identified. It is planned to be commissioned in 2015-16," Gujarat Principal Secretary (Energy) DJ Pandian told reporters here on the sidelines of a CII conference on shale gas.

He added that the entire project cost is estimated at Rs 3,500 crore and GSPC is now looking at preparing detailed project report (DPR) of the proposed LNG terminal, which will be third such project in the state.

"Now GSPC will go for the DPR and then issue the EPC (engineering, procurement and construction) contract in 6 months to 1 year's time," Pandian further said.

GSPC, the Gujarat government-owned company, holds 50% stake in the venture, while Adani Enterprises has 25% stake. However, Essar group -- the third partner with a 25% stake in the venture -- has exited from the proposed LNG terminal.

"We are not worried about it, there is lot of interest. In next 6 to 12 months, we will look for the third partner after completing a certain level of work," Pandian said.

The state is also contemplating another LNG terminal at Pipavav of 2.5 to 5-million tonne per annum capacity, he said, adding that the companies will have to carry forward the proposal.

"There is lot of interest. Torrent, Gandhis (of Pipavav Defence and Offshore Engineering Company) and many others are there but somebody should take a lead," Pandian said.

Gujarat has two LNG terminals at Hazira and Dahej, with a total capacity of 13.6 million tonne per annum.