Mundra LNG terminal plans first cargo tender

Vol 21, PW 23 (23 Aug 18) Midstream & Downstream
     

After several delays, GSPC and Adani appear ready to buy their first LNG cargo to commission the 5m t/y re-gasification terminal at Mundra, most likely in October.

Expect GSPC's gas sourcing department to issue a tender sometime between September 15 and 21. "We're planning to take delivery either end-September or early October," reveals a source.

"But there might be some minor changes to these dates at the last minute." This report learns Larsen & Toubro completed laying the 36-inch diameter, 67-km R-LNG evacuation pipeline from Mundra to Anjar in July.

Soon after the GSPC board gave its green light to proceed and commission the terminal. Last year, the pipeline ran into trouble after authorities at the tax-free Mundra Special Economic Zone (SEZ) refused permission for a 17-km stretch of the pipeline through the SEZ.

But luckily that was resolved. Once Mundra is commissioned, GSPC hopes IndianOil will go ahead with a proposal to acquire up to 50% at the terminal where GSPC holds 50% and partner Adani holds 25%.

GSPC is legally bound to retain at least 11% in line with the Gujarat government's LNG policy issued in 2012 under which the state or one of its affiliate companies must hold at least 11% in any LNG terminal. This leaves IOC the option of acquiring 39% from GSPC's share and up to 11% from the 25% stake not held by anyone.

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