GAIL to set up LNG terminal in Paradip Port

GAIL India Ltd has signed a Memorandum of Understanding (MoU) with Paradip Port Trust for setting up of a LNG Terminal. As a part of capacity augmentation programme of Paradip Port, it is proposed to construct an offshore breakwater to improve navigability of cape size vessels in the approach and entrance channel besides simultaneous construction of LNG regasification terminal, said G K Vasan, Minister of Shipping, Government of India.
 
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GAIL having the authorisation of laying Jagdishpur-Halida and Surat-Paradip LNG pipeline has planned to set up the Floating Storage and Regasification Unit (FSRU) in Paradip Port. GAIL envisages setting up the project with a send-out capacity of 4 MMPTA in Phase I with a storage capacity of 170,000 cubic meters. This will entail a total investment of Rs 3,108 crore out of which Paradip Port would invest Rs 650 crores in breakwater & dredging and balance Rs 2,458 crores will be invested by GAIL. Considering long term potential of the market along the east coast, it is likely that Phase II of the project will also have an additional capacity of 4 MMTPA, which will take the overall terminal capacity to more than 8 MMTPA.
 
Vasan said the completion of this project will put Odisha on World LNG Map heralding a new era in the industrial development and employment generation in the state and the country. Paradip Port is strategically located between Kolkata and Visakhapatnam Ports so as to serve a vast hinterland spreading over the states of Odisha, Jharkhand, Chhattisgarh, Madhya Pradesh, Uttar Pradesh, Bihar and West Bengal.