Shell plans 10m t/y LNG terminal at Hazira

Vol 6, PW 25 (26 Feb 03) Midstream & Downstream

DETAILS ON construction activity at the Hazira LNG terminal continue to trickle in despite Shell's inexplicable reluctance to share information.

Work is at an advanced stage on the LNG storage tanks, a critical component of the terminal. "A total of 3,200 stone columns have been hammered into the ground for both the tanks completing the piling work," reveals a source.

"The cement concrete base for both tanks has also been laid." Workers are currently raising the cement concrete outer wall for both tanks. "The outer walls of both tanks are now almost six metres high." Each tank can store 165,000 cubic metres of gas, the same quantity carried by one 'standard' LNG tanker.

Significantly, Shell has set aside space for a total of four LNG tanks, each with a capacity to hold 165,000 cubic metres. When the two additional tanks are built, the capacity of Hazira will rise to 10m t/y.

This will not happen soon. "It depends on market conditions, we learn.

And on Shell's policy regarding LNG inventories at Hazira and the response from customers." Shell has completed engineering work ahead of construction of the regassification facilities. We learn also that Shell has placed orders for all 'long lead items' such as compressors and gas turbines.

"Equipment and components have already arrived at Mumbai port and some are on their way by road to Hazira." Construction work for the regassification facilities will begin before June when the monsoon sets in. Elsewhere, Shell plans to develop Hazira as a container port, not just a LNG import terminal.

"Shell sees great promise in non-LNG cargo through Hazira," we learn. "No capacity figures are yet final, but we reckon it could easily handle 5m t/y container cargo."