Venerable plans 'merchant' Haldia LNG terminal

Vol 22, PW 15 (16 May 19) Midstream & Downstream
     

With a name that commands respect, literally, Delhi-based Venerable LNG is in talks with LNG importers in India in the hope they will use its planned 1m t/y LNG terminal in West Bengal.

Venerable managing director Mayank Garg tells this report the project will operate purely as a 'merchant' facility, for R-LNG retailers to book capacity. Garg is confident that if environmental clearance comes in time German EPC contractor TGE Gas Engineering will begin construction on the estimated Rs700cr ($100m) 'mini' LNG terminal at Haldia in October 2019 so commercial operations can begin from July 2021.

Venerable has awarded a contract to prepare an EIA after the environment ministry issued Terms of Reference on March 23 following submission of a pre-feasibility report to the environment ministry on January 30. Garg adds Venerable decided on a small capacity LNG project after witnessing how Petronet-LNG's Kochi terminal is barely utilised and the slow progress laying R-LNG pipelines from IndianOil's Ennore terminal.

"Large scale terminals today face problems laying pipelines," he stresses. "A different model is needed to tap the emerging gas market.

There’s a significant niche to be exploited." LNG will arrive in small 7500 to 45,000 cubic metre capacity tankers and pumped into a single onshore LNG storage tank with a maximum 60,000 cubic metre capacity.

Gas will be dispatched as LNG in cryogenic trucks and rail wagons and as R-LNG through an upcoming regional gas pipeline network.