MbPT: 'Our FSRU is better than Dabhol LNG!'

Vol 18, PW 13 (26 Feb 15) Midstream & Downstream

Finally the mystery has been solved over why the Mumbai Port Trust (MbPT) wants to set up a 5m t/y Floating Storage and Regasification Unit (FSRU) when the largely unutilised Dabhol LNG terminal is just 250-km south.

If you believe an MbPT official it’s because the Mumbai project is “better.” How so? He says an internal market study reveals Mumbai has captive customers for 30-40% of the R-LNG from the FSRU.

“We have the HPCL and BPCL refineries, the Rashtriya Chemicals & Fertilisers (urea factory) and Tata Power (power station) all in Mumbai itself,” he says. “Then there are factories in the industrial clusters around Mumbai.

” Dabhol on the other hand, he claims, is in the “middle of nowhere” and has no such captive market within its vicinity. Strangely our source seems to forget that Dabhol has a 1967-MW captive power station.

“Also our (Mumbai) FSRU will operate 365 days a year unlike Dabhol which must be shut from May to October during the monsoon because it doesn’t have a breakwater,” he adds. “Because of its location Dabhol will never attract quality (technical and managerial) people unlike our project.

” MbPT says R-LNG from the FSRU will be transported by pipeline to Uran where it will be fed into GAIL’s gas grid. “Gas evacuation and marketing is no problem,” he says.