Petronet may set up Rs 5,000 cr LNG terminal

Petronet LNG Ltd, one of the fastest growing companies in the Indian energy sector has evinced interest in setting up an LNG (Liquified Natural Gas) terminal along the Orissa coast.

Dhamara, Gopalpur and Paradip ports in the state have been identified as the possible locations for the proposed LNG terminal which is set to cost Rs 4,000-5,000 crore.

“Petronet LNG is keen to set up an LNG terminal along the Orissa coast. The company is yet to zero in on any site though Dhamara, Gopalpur and Paradip have emerged as the potential locations. Petronet LNG has told us that the Orissa coast is the most suitable location for setting up the LNG terminal in which Rs 4,000-5,000 crore will be invested,” T Ramachandru, principal secretary (industries), Orissa government told Business Standard.

Petronet LNG is understood to be in talks with Paradeep Port Trust (PPT) authorities as well as promoters of Dhamara Ports Company Ltd (DPCL) and Gopalpur Ports Ltd (GPL) for the project. “We had initial discussions with the officials of Petronet LNG. They have proposed to set up an LNG terminal along the Orissa coast and we are open to the idea of setting up the terminal at Gopalpur. Petronet LNG officials have talked to PPT authorities as well as DPCL,” said Charchit Mishra, director of GPL.

Santosh K Mohapatra, chief executive officer of DPCL said, “Proposals for projects keep coming at different stages but it is not appropriate to talk of them until these proposals take shape.” The capacity of the proposed terminal in Orissa and timeline of commissioning of the project are yet to be worked out.

Petronet runs India’s first LNG receiving and re-gasification terminal at Dahej (Gujarat) having a capacity of 10 million tonne per annum (mtpa), equivalent to 40 mscmd (million standard cubic metres per day) of natural gas. The company is in the process of building another terminal at Kochi (Kerala) which will have a capacity of five mtpa equivalent to 20 mscmd.

India’s gas demand is expected to reach 381 mscmd by 2015, compared with a supply of 202.9 mscmd. India has an LNG import capacity of 13.5 mtpa through two terminals, accounting for about 20 per cent of the country’s gas requirements.

Besides Petronet LNG, a joint venture of Shell Gas BV and Total Gaz Electricité Holdings-France runs a 3.5 mtpa capacity LNG terminal at Hazira, also in Gujarat.