Hopes rise for IL&FS promoted LNG terminal

Vol 20, PW 3 (20 Oct 16) Midstream & Downstream
     

Hopes are rising that a proposed 5m t/y LNG terminal planned on Gujarat's Kutch coast by Mumbai-based financial services giant and household name IL&FS will happen.

One positive sign is a proposed captive 2000-MW gas-fired power station linked to the LNG terminal which received environmental clearance on September 29: a full 17 months after the proposal was accepted by the environment ministry on January 6, 2015. When commissioned the power station will run on 7.7m cm/d R-LNG received by pipeline from the LNG terminal at the Nana Layja seafront, which lies eight-km to the south.

IL&FS is developing the LNG terminal through its subsidiary Gujarat Integrated Maritime Complex (GIMCO) which signed a MoU with the Gujarat Maritime Board two years ago. GIMCO is talking to global LNG suppliers in Africa, the Middle East and Australia and also to GAIL for supplies from the Sabine Pass and Cove Point terminals in the US.

In India IL&FS is involved in everything from building roads, schools, ports and water management systems to investment banking and is developing the LNG project through GIMCO: a joint venture with Mumbai-headquartered logistics company Allcargo. IL&FS plans to set up the proposed Rs7187cr ($1bn) power station through special purpose vehicle Nana Layja Power Company on 66 acres of land inside a multi-product SEZ where it can benefit from sizeable government tax breaks.