MbPT invites bids for storage and re-gasification unit at Mumbai harbour

The 5 MMTPA capacity project to cost Rs 2,740 crore

The Mumbai Port Trust (MbPT) has floated a tender for the development of a floating storage and re-gasification unit (FSRU) in Mumbai Harbour on public-private partnership (PPP) mode with five million tonnes per annum (mta) capacity. The proposed project to be developed on design, build, finance, operate and transfer basis entails an investment of Rs 2,740 crore. Bidders will have to submit request for qualification (RFP) by February 18. Thereafter, the qualified bidders will be asked to submit request for proposal.

An MbPT official told Business Standard: “In order to meet the growing market demand of natural gas in the western coast of India, the Mumbai Port Trust has decided to pursue the development of FSRU in Mumbai harbour.

MbPT has already applied to the Ministry of Environment and Forests for approval to the terms of reference. It will carry out an environment impact assessment study and process the environmental clearance. The concessionaire will be required to carry out the risk assessment study. The trust has taken up the issue of evacuation of re-gasified liquefied natural gas with GAIL India, which has a pipeline grid at Uran and a national gas pipeline grid nearby. MbPT has appointed Feedback Infra as the transaction advisor for the project, while Indian Institute of Technology — Chennai has carried out technical study.

Further, the seismic study is being undertaken by the MbPT and the report will be shared with the bidders at the RFP stage.

“The support facilities to be developed as part of the project include FSRU vessel with storage capacity of 170,000 cubic metres and 5 mta gas production capacity, marine terminal including berthing and mooring facilities for FSRU and LNG carriers,” said the MbPT official cited above.

He added the concessionaire would be responsible for the design, engineering, financing, procurement, implementation commissioning, operation, management and maintenance of the project.

According to the bid document, the PPP operator will be required to market the project and derive revenue from potential users. The prospective bidder will also have to carry out necessary market survey.