GSPC-Adani to pump in Rs 500 cr for LNG terminal land in Mundra

Total capacity envisaged at 20 MMTPA for Rs 8000 crore.

Gujarat State Petroleum Corporation (GSPC) led consortium has begun the necessary spadework at Mundra to set up an liquefied natural gas (LNG) terminal for an initial capacity of 6.5 MMTPA with a view to ramp it up to 20 MMTPA in a phase-wise manner. While GSPC holds 51 per cent stake in the project, Adani will hold about 25 per cent stake.

GSPC LNG, a special purpose vehicle floated for LNG business, is aiming to re-claim about 28 hectares of land from the sea for an estimated investment of Rs 500 crore, said government sources close to the development. For setting up 20 MMTPA, the project will require about 70 hectares of land in all, he added.

When contacted an official of GSPC LNG refused to comment on the issue.

While the consortium will see a capacity of 5 MMTPA and 6.5 MMTPA in peak period 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 with a capacity of 160K each and a jetty. The overall project cost is estimated at Rs 8,000 crore for setting up 20 MMTPA will see addition of one more jetty and six tanks in all.

Meanwhile, GSPC LNG has roped in Brussels based Tractebel Engineering as technical advisor to the project. Tractebel has expertise ranging from gas collection to LNG installations and gas pipelines, up to city gate and distribution networks, including underground storage.

GSPC has initiated soil tests and seismic studies and hopes to complete it by July-August. The project is likely to be commissioned by end of 2012 or first quarter of 2013.

While the remaining 25 per cent equity is yet to be tied-up, GSPC-Adani consortium has decided to go ahead with the project.

Earlier, GSPC was in talks with various players including Essar group, HPCL and Indian Oil however things did not work out due to some reason or the other, sources said. “We are in no hurry for a third partner,” an official said.