Hiranandani changes LNG terminal location

Vol 16, PW 25 (11 Jul 13) Midstream & Downstream
     

Hiranandani Group has changed the location of its proposed 8m t/y LNG terminal from Dighi Port to Jaigarh Port in Maharashtra, about 200-km south of Mumbai.

Hiranandani Gas Company (H-Gas) invited EoIs on July 1 from companies who can construct and commission the proposed Jaigarh LNG terminal with a submission deadline of July 15. "We signed an agreement (to set up the LNG terminal) earlier this year with JSW Jaigarh Port (a Jindal Group subsidiary)," says a senior H-Gas source.

Jindal in turn signed a concession agreement to operate Jaigarh with the Maharashtra Maritime Board in June 2008. H-Gas expects a good response from EPC contractors, hungry for the $1bn project.

"We will evaluate EoIs in three months," adds H-Gas. "Then we will issue tenders to build two 190,000-cubic metre capacity LNG storage tanks, regasification and topside facilities with unloading arms.

" H-Gas has carried out extensive studies around Jaigarh which reveal enough demand for 8m t/y of LNG or 29m cm/d. It is also optimistic about potential sales as the gap between the R-LNG price and domestic gas is set to reduce soon: on June 27 the cabinet decided to increase the domestic gas price from $4.2/mmbtu to $8.4/mmbtu from April 1, 2014, fixed for five years.

H-Gas adds it won't worry about sourcing LNG as the proposed facility will operate as a merchant terminal. "Anyone can bring a cargo,” we hear, “pay us a fee and regasify LNG.