GSPC wins 'green' all-clear for Mundra LNG project

Vol 17, PW 12 (30 Jan 14) Midstream & Downstream
     

GSPC LNG has won approval from the environment ministry's feared Expert Appraisal Committee (EAC) for its proposed Mundra LNG terminal.

This follows a presentation to the EAC for the Rs5000cr ($1bn) terminal, which it is setting up with partner Adani, on January 23. In October last year the EAC blocked clearance following Adani’s brush with authorities after it damaged mangroves during Mundra port construction.

“The EAC commented favourably,” confirms a source. GSPC and Adani successfully argued the LNG terminal was in a separate location to the damaged mangroves and unrelated.

“After the EAC sends its recommendations to the environment ministry,” adds GSPC, “we expect to receive clearance.” Luckily for GSPC, oil minister Veerappa Moily also holds the environment ministry portfolio and is accelerating pending clearances.

Within the next three weeks, according to company sources, GSPC LNG will make some critical project decisions. A board meeting scheduled before February 22 will confirm the third strategic partner for a 25% stake in the Mundra project.

“Our preferred choice is (BP-Reliance JV) India Gas Solutions,” we hear. GSPC will also decide on whether to open price bids for EPC tenders to construct re-gasification facilities.

Finally the board will agree to sign a definitive agreement with Jordan Cove Energy, promoted by Canada's Veresen, to source 2m t/y of LNG from its Oregon terminal.