Adani Ports and Special Economic Zone (APSEZ) today said it has entered into a pact with Indian Oil Corporation to provide LNG regasification services at its import terminal in Odisha.
As per the contract, IOC has booked 3 million tonnes per annum (MTPA) regasification capacity spread over 20 years, APSEZ said in a statement.
"APSEZ...has signed a long term agreement with IOC to provide Liquefied Natural Gas (LNG) regasification services on a use or pay basis to the state-run refiner, at its upcoming LNG import terminal at Dhamra in Odisha," the company said.
IOC plans to supply gas to its refineries in Paradip in Odisha and Haldia in West Bengal.
"We are pleased to partner with Indian Oil by signing this long term agreement. India lacks adequate LNG import infrastructure at present and I am confident that this project will play a key enabling role for increasing gas consumption in that part of the country. In fact, the terminal will play a strategic role in gas supply to Bangladesh and Myanmar as well," said Karan Adani, CEO, APSEZ.
The foundation stone of the project was laid in July 2017 and construction has commenced by infrastructure firm Larsen & Toubro (L&T), winning the contract to set up the tankages for gas storage. The terminal is expected to be commissioned during the second half of 2021.
APSEZ said the proposed Dhamra LNG import terminal is designed for an initial capacity of 5 MTPA, expandable up to 10 MTPA.
"Initially, it will have two full containment type tanks of 1,80,000 m3 capacity each. It will be first of its kind in India and second LNG terminal on the east coast after IOC's Ennore terminal in Tamil Nadu," the company said.
It said the company will have a jetty capable of handling a wide range of LNG supply vessels, including the largest Q-max fleet from Qatar. The terminal will be capable of reloading LNG to service proximate markets via the marine route and will also have truck loading gantries to help grow the nascent but exciting LNG by truck market.
Headquartered in Ahmedabad, the USD 12-billion Adani group has operations across the world and APSEZ has 10 strategically located ports and terminals on both the western and eastern coastline of India - Mundra, Dahej, Kandla and Hazira in Gujarat, Dhamra in Odisha, Mormugao in Goa, Visakhapatnam in Andhra Pradesh, and Kattupalli and Ennore in Chennai - representing 24 per cent of India's total port capacity.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
