India’s leading liquefied natural gas player Petronet LNG has taken the final investment decision on its proposed floating storage and regasification unit-based LNG import project at Gopalpur, which will be the company’s first such facility on the nation’s east coast.
Petronet LNG confirmed its board has approved the 4 million tonnes per annum Gopalpur LNG phase one import project, which comes with an estimated price tag of 23.06 billion Indian rupees (US$279 million) including taxes and duties. The project in Ganjam district in the state of Odisha, which is expected to be operational before the end of 2025, will be financed by a combination of debt and equity.
Petronet LNG added that the FSRU-based receiving and regasification scheme has the provision to be converted in future to a land-based terminal - with expected capacity of 5 million tpa.
Upstream reported on 6 September 2021 that Petronet LNG had signed a memorandum of understanding with Gopalpur Ports and was looking to finalise details of the commercial and technical terms of this agreement before taking the FID.
The company currently operates the 17.5 million tpa Dahej receiving and regasification terminal, in India’s northwest state of Gujarat, which is undergoing expansion to a capacity of 22.5 tpa, and the 5 million tpa Kochi import facility in Kerala, in the southwest. Both are land-based terminals. Adding the planned 5 million tpa of extra capacity at Dahej — already the world’s largest LNG import facility — involves construction of a new jetty that is also able to handle propane and ethane shipments, plus more LNG storage tanks and bays for loading trucks.
Petronet LNG’s considered locations for what would be its fourth import facility include Gangavaram in Andhra Pradesh in eastern India, and India’s remote Andaman and Nicobar Islands, which lie nearer to the coasts of Myanmar and Thailand than to the Indian mainland.
Petronet LNG is a consortium that comprises India’s state-owned Oil & Natural Gas Corporation, Indian Oil Corporation, Gail and Bharat Petroleum Corporation with a combined 50% interest, with the remaining 50% being publicly held.
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