Gujarat Pipavav Port, a part of the world’s largest container traffic operator, APM Terminals, is facing a delay in its plan to have a LNG (liquefied natural gas) terminal. The company had signed an agreement earlier this year with Mumbai-based Swan Energy to set up the terminal in its Gujarat-based port.
Pipavav has 400 hectares of land and a considerable part has been reserved for the LNG project. Swan Energy, which changed its name from Swan Mills, is aiming to set up various infrastructure projects in Gujarat, including power projects.
“The plan is delayed by about a year,” said Prakash Tulsiani, managing director, Gujarat Pipavav Port. “The delay is primarily on account of the economic downturn.” The terminal is now expected to be ready by 2013, instead of earlier deadline of 2012.
According to an analyst, India has a demand of about 170 mmscmd of gas, double the supply available. LNG is primarily used for transporting natural gas. Once the terminal is set up, the company will do the re-gasification and sell it to fertilizer and petrochemical companies in Gujarat through an extended pipeline.
Investment for the terminal is coming from Swan Energy, while Pipavav Port would be earning from various charges, including marine and handling fees. The company has not disclosed the investment required for the terminal. Pipavav has had Rs13,000 crore investment so far. It does not disclose its revenue figures.
India currently has two LNG terminals of about 8 mbtu capacity. These are operational at Dahej and Hazira, both in Gujarat. Dahej has been set up by Petronet LNG and the Hazira terminal by Shell. A third LNG terminal is expected to be commissioned this year at Dabhol on Maharashtra’s west coast. One more terminal is expected at Kochi in Kerala. These facilities will benefit the fertiliser and petrochemical companies, which are primarily on the west coast of the country.
