Tractebel bags $10 mn FEED study order from GSPC

Gujarat State Petroleum Corporation (GSPC) LNG Limited has roped in Trectebel Engineering for conducting the front-end engineering and design (FEED) study for the former's 6.5 MMTPA (million metric tonne per annum) LNG ((liquefied natural gas) terminal project.

“We have recently awarded Tractebel the contract to carry out the FEED study for about $10 million (approximately Rs 50 crore). We plan to start the construction work on the project in the second half of 2010,” said a senior government official on condition of anonymity.

Tractebel will submit its reports in two phases in a period of nine months. While GSPC holds 51 per cent stake in the project, the Adani Group will hold about 25 per cent. GSPC LNG is a special purpose vehicle created by GSPC to set up an LNG receiving, storage and re-gasification terminal in the state.

The proposed terminal will come up in the SEZ area in Mundra being developed by the Adani group. GSPC LNG is in the process of re-claiming about 28 hectare of land from the sea at an estimated investment of Rs 500 crore, said sources close to the development.

GSPC is planning to set up the LNG terminal with an initial capacity of 6.5 mmtpa, with plans to scale it up to 20 mmtpa in a phased manner. While the terminal will see a capacity of 5 mmtpa and 6.5 mmtpa in peak periods in the first phase, GSPC LNG aims to add re-gasification hardware that will ramp up the capacity to 7.5 mmtpa. The first phase will involve an investment of about Rs 3,500 crore, which includes setting up of two tanks and a jetty.