All set to commission Mundra LNG by May 2017

Vol 20, PW 4 (03 Nov 16) Midstream & Downstream

Brimming with confidence, GSPC believes it can commission its proposed 5m t/y LNG terminal in Gujarat by May next year (2017).

"Construction will be completed by March 2017," reports a GSPC source. He adds EPC contractors Toyo and IHI are moving fast with work at the terminal.

Toyo, he says, has completed 95% of the work to set up regas facilities while IHI has completed 90% of work to set up two storage tanks of 185,000 cubic metres capacity each. IHI is working on the bottom plates of the storage tanks and is expected to carry out testing this month (November).

All this sounds good. But the big question on everybody's mind is whether BSE-listed Gujarat State Petronet can lay the needed R-LNG evacuation pipeline in time to coincide with the commissioning of the LNG terminal next year.

"We want the terminal commissioning and pipeline laid 'in sync'," adds a Gujarat Petronet source. But he admits the bid deadline in a tender to lay the 36-inch diameter, 67-km pipeline from Mundra to Anjar town in Gujarat's Kutch district has been extended from September 21 to November 7.

Also unclear is who will be the third strategic partner to join GSPC (50%) and Adani (25%) in the terminal or if the idea has been dropped? GSPC's gas sourcing plans too are a mystery although some speculate it might shift its 2.5m t/y contract with BG (now Shell) from Dahej to Mundra.