Adani-Total LNG terminal poised for lift-off

Vol 25, PW 12 (19 May 22) Midstream, Downstream, Renewables

Hard to believe but true - a major Indian LNG project is on track and on time.

Adani-Total is confident it can complete the construction of its 5m t/y Dhamra LNG terminal on the Odisha coast by July (2022) and begin receiving the first LNG by October (2022). "Everything is proceeding smoothly," confirms an Adani-Total source.

If true, Dhamra in Bhadrak district will soon see India's second east coast LNG terminal after IndianOil's 5m t/y Ennore terminal in Tamil Nadu. Work is almost complete on three critical segments: marine facilities, regasification, and storage tanks.

Our source adds that Adani-Total's contractors are giving the terminal some last-minute finishing touches. "Over the past two years, Covid-19 raised questions about the project's timely completion," we hear.

"But we kept to the deadlines." A Gandhinagar government source adds Adani has built up a formidable reputation for executing infrastructure projects.

"At Dhamra, they have worked fast," he says. "On-site preparation began in 2018, and almost 70% of work was completed by December (2020)."

Two 180,000-cubic metre cryogenic LNG storage tanks will be ready to receive the first LNG cargoes at Dhamra in October (2022). Between August and September (2021), L&T and partner Whessoe hydro-tested the two tanks, filling them with water to check leaks.

After hydro-testing, L&T-Whessoe cleaned the tanks using nitrogen before sealing the inner compartment of each tank. L&T-Whessoe won the $169m contract to set up the twin tanks in March (2018).

Taiwan's CTCI with Cinda is also close to completing the shell and tube vaporiser regasification facilities under a $240m contract won in April (2018). Ahmedabad-based Howe Engineering has successfully dredged the port at the Dhamra river mouth and set up a jetty.

On the demand side, IOC and GAIL have signed 20-year agreements to offtake 4.5m t/y: IndianOil signed a deal in April (2018) for 3m t/y, and in July (2018) GAIL signed an agreement for 1.5m t/y. Other LNG terminals in India like Kochi, Ennore and Mundra have faced under-utilisation problems because of no R-LNG evacuation infrastructure.

Dhamra is in a better position: GAIL is almost ready with the 1836-km Phase-II Jagdishpur to Haldia and Bokaro to Dhamra pipeline, part of the 2655-km Urja Ganga pipeline.