FSRU: And now Kolkata Port Trust wants one too…

Vol 18, PW 12 (12 Feb 15) Midstream & Downstream
     

Calcutta, or Kolkata as it's now called, is the latest city to jump onto the FSRU bandwagon, with little or no explanation why, except the obvious that India needs gas to fuel its stuttering industrial growth.

On February 16, the Kolkata Port Trust will open technical and price bids in a tender for a 1m t/y FSRU for this steaming metropolis of 14m people and India's third biggest city after Delhi and Mumbai. All bets are on Mumbai-based H-Energy, promoters of an 8m t/y LNG terminal at Jaigarh on the Maharashtra coast, winning the estimated Rs2500cr ($400m) mandate because of its familiarity with the project.

Back in November 2013, the Kolkata Port Trust was set to approve H-Energy’s proposal to set up a 4m t/y FSRU but officials swiftly back-tracked in favour of an open tender following fears of a 'vigilance' or corruption inquiry. Other companies that bought tender documents on or after December 5, 2014 include Chennai-headquartered IMC, Belgium’s Exmar, Delhi-based Alar Impex, Teekay Shipping and Marubeni.

"Any successful bidder must set up the FSRU with a minimum throughput of 1m t/y," confirms a Kolkata Port Trust source. "If they want to set up a higher capacity FSRU that's their decision.

" Kolkata Port Trust says it will offer land for gas evacuation but gas marketing is the winner's responsibility.