GSPC considers FSRU 'quick fix' for Mundra

Vol 15, PW 17 (08 Mar 12) Midstream & Downstream

Five years of squabbling with Gautam Adani-controlled Adani Gas over the shareholding pattern for the proposed 5m t/y Mundra LNG terminal has cost GSPC precious time.

So as a ‘quick fix’ it’s thinking of setting up a 2.5m t/y Floating Storage and Regasification Unit (FSRU) at Mundra to receive LNG cargoes until the terminal is ready in mid-2015. GSPC subsidiary GSPC LNG considered the FSRU option at its last board meeting January.

“We are running behind at Mundra,” rues a GSPC LNG source. “If necessary we can opt for a FSRU first followed by a fully-functional LNG terminal.

” Expect the GSPC LNG board to decide on the FSRU proposal at its next meeting, likely to take place later this month (March). Typically, a 5m t/y LNG terminal takes at least 36 months to construct, twice as long as the time needed to set up an FSRU.

“Getting a FSRU in place is relatively easy,” we learn. “You just hire a LNG tanker with onboard regasification and storage facilities.

” Such a vessel is anchored offshore and receives cargoes offloaded from other LNG tankers, which berth alongside it. R-LNG from the FSRU is transported to land through a Single Buoy Mooring and a ‘subsea pipeline.

’ If it opts for a FSRU, GSPC must talk to one or more of the four major companies who hire out these vessels: Bermuda-based Golar LNG, Texas-based Excelerate Energy, Canada-based Teekay Shipping and Japan’s Mitsui OSK Lines. Mumbai-based Swan Energy is similarly planning to set up a 3m t/y FSRU off the Pipavav coast in southwest Gujarat.

Last year, Swan signed a MoU with Teekay for a 70,000-tonne LNG tanker.

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