Another LNG terminal proposal going nowhere

Vol 19, PW 9 (14 Jan 16) Midstream & Downstream

As LNG projects go this one is moving at an excruciatingly slow snail's pace.

Yet despite the delay, Gujarat Integrated Maritime Complex (GIMCO) - a JV between banker IL&FS and BSE-listed Allcargo Global Logistics - is doggedly pursuing plans to set up a 5m t/y LNG terminal on the Kutch coast in Gujarat. PETROWATCH learns GIMCO wants more time from the environment ministry to finish the evaluation process needed for environmental clearance.

Saibal De, a company director, wrote to the environment ministry on December 18 requesting a one-year deadline extension till November 14, 2017 for submission of the Terms of Reference (ToR) granted on November 14, 2013 for three years and due to expire this year. GIMCO tells us the project is behind schedule because the Gujarat Coastal Zone Management Authority (GCZMA) is unhappy.

After three meetings in February, April and September last year (2015) coastal authorities asked the JV to carry out additional studies. “The extension is because we need more time to complete the studies,” admits GIMCO.

After a public hearing on December 12, 2014, GIMCO filed an EIA report prepared by L&T Ramboll Consulting on December 24, 2014. Under the ambitious Rs40,000cr ($6bn) project GIMCO aims to set up a LNG terminal, a 2000-MW gas-based power station, a 4000-MW coal-based station, a shipyard and a multi-product Special Economic Zone (SEZ).