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After delay, GSPC's LNG terminal project in Mundra back on track

EAC recommends grant of EC, CRZ clearance to Gujarat govt's Rs 3,500 crore project

Premal Balan Ahmedabad
Last Updated : Feb 27 2014 | 9:05 PM IST
The expert appraisal committee (EAC) of the ministry of forests and environment (MoEF) has recommended grant of environment and costal regulatory zone (CRZ) clearance to state-run GSPC LNG Ltd’s LNG terminal at Mundra Port, putting Gujarat government’s plan on track to commence the project by 2016. GSPC LNG Ltd is a joint venture between state-owned Gujarat State Petroleum Corporation (GSPC) Ltd and Adani Group.

The Rs  3,500 crore, where GSPC LNG Ltd has majority stake, was recommend green clearance during the EAC’s January 22-24 meeting. One of the conditions for grant of environment clearance (EC) and CRZ clearance to the project is that the company shall abide by any directions issued by the MoEF based on the Sunita Narain Committee report. In April 2013, the committee headed by Narain set up by the MoEF had held that Adani Port and Special Economic Zone (APSEZ) Ltd, where the  Mundra port is located, had violated environmental clearance conditions and recommended imposition of penalty on the company which is part of the Rs  50,000 crore Adani Group promoted by billionaire Gautam Adani.

The decision on green clearance for this project has been delayed since one year because of the pending litigation against APSEZ where the terminal in proposed to be set up. Mundra Port is part of the APSEZ Ltd which is in midst of controversy over environmental clearance. The decision of the EAC comes on close heels of Gujarat High Court order on January 13 directing the MoEF to decide on EC to APSEZ with in a months time.

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“After deliberation, the EAC recommended the project grant of EC and CRZ clearance to the project stipulating the following conditions,” stated the minutes of the EAC meeting. The conditions laid down by the EAC for recommending grant of EC and CRZ clearance included that, “the company shall carry out any direction issued by the MoEF with respect to the report submitted by Ms Sunita Narain Committee as applicable shall be complied with by the Proponent as applicable.”

GSPC LNG Ltd has also been asked to carry out annual bathymetry survey in Baradimata creek and the near shore areas in front of the mouth of breakwaters as proposed in the hydrodynamic study. It will also have to carry out periodical maintenance dredging to ensure that the creek mouth remains open in all the seasons for tidal exchange of water.

The EAC has also sought that the company continuously monitor tide levels in the creek, measure water flow at the Baradimata creek once a year or 7 days during spring and neap tides to establish a trend and monitor any adverse changes in reduction of flow into the creek. The company has been asked to submit findings and action taken on recommendations by the EAC to MoEF every six months.

GSPC LNG Limited was set up in 2007 to develop a LNG receipt, storage and regassification terminal at Mundra in Gujarat. The terminal shall have initial capacity of 5 MMTPA (million metric tonne per annum) with provision to expand to 10 MMTPA and ultimate expansion shall lead to capacity of 20 MMTPA. The 5.0 MMTPA LNG terminal is designed to have a berth for receiving LNG tankers of sizes 75,000 cubic meter to 260,000 cubic meter, two LNG storage tank, facilities for regasification and gas evacuation facilities to name a few.  

According to GSPC LNG website its has completed the pre-project activities including Front End Engineering and Design (FEED) and other studies. It is now in process of selecting EPC (Engineering, Procurement, Construction) contractors for the project through international competitive bidding route.

At present, there are two LNG terminals in the state- one at Hazira in south Gujarat and the other at Dahej with combined capacity of over 13 MMTPA. Besides, Mundra another LNG terminal is proposed at Pipavav port, which will have 2.5 MMTPA to 5 MMTPA capacity.

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First Published: Feb 27 2014 | 8:59 PM IST

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