GSPC plans 2 LNG terminals, may spend $1.1bn

Gujarat State Petroleum Corporation (GSPC) is planning to set up two liquefied natural gas (LNG) terminals in Gujarat with an investment of $1.1 billion.

GSPC has signed an initial pact with Adani Energy, a Adani Group unit, for setting up a five million tonne per annum import and regassification terminal at Mundra port.

It has also signed a memorandum of understanding with Essar Energy, a unit of Mumbai-based Essar Group, for a similar facility at Pipavav.

Company officials said the agreements were only a statement of intent for going ahead with the project, and project structure and equity pattern will be finalised soon.

"We need to do a detailed feasibility for the two projects before arriving at final investment numbers," an official said. "We also have to look for a gas source before proceeding with the projects."

Gujarat already has Petronet LNG's five million tonne per annum LNG receipt facility at Dahej, and Shell's 2.5 million tonne per annum terminal at Hazira.

GSPC has signed a deal with Petronet for the construction of two additional storage tanks at the Dahej facility for $300 million.