Essar FSRU plan hinges on Shell court battle

Vol 20, PW 1 (22 Sep 16) News in Brief

Essar's ambitious plan to set up a 6m t/y FSRU and 6m t/y FSU at a total cost of Rs2680cr ($403m) hinges on the outcome of a case it has filed against Hazira Port promoters Shell and Total and their sub-concessionaire Adani Hazira Port.

Happily the end is in sight as Shell and Total prepare to complete their submissions to the Gujarat High Court this month (September). Seventeen hearings have taken place so far with the last on September 20 presided over by the first division bench of chief Justices R.

Subhash Reddy and Vipul Pancholi. In a petition filed in May 2016 Essar accuses Hazira Port and Adani Hazira Port of encroaching on 567 hectares of land reclaimed by the company at a cost of Rs1500cr ($225m).

Fifty hectares of this land, argues Essar, is needed to set up the FSRU and FSU facilities. But because of the alleged encroachment Essar says it has little option but to abandon the project.

Essar accuses Gujarat authorities and the Gujarat Maritime Board of backing Shell, Total and Adani.