Petronet-LNG wants two "concession" agreements

Vol 5, PW 12 (01 Aug 01) Midstream & Downstream

Petronet-LNG wants two separate "concession agreements" at Dahej, one for the solid cargo port, and a second for the LNG regassification terminal.

Gujarat authorities are asking Petronet-LNG to justify the request in writing. A source tells Petrowatch the demand for written justification came from Balwant Singh, a secretary in the Department of Port & Fisheries, during a meeting held in Gandhinagar with Petronet-LNG managing director Suresh Mathur and technical director Shyam Sunder on 11th July.

It's understood Petronet-LNG is preparing a detailed note for submission. In May last year Gujarat authorities reacted angrily to a request by Petronet-LNG to drop construction of a solid cargo port alongside the LNG regassification facilities, in defiance of the Letter of Intent issued by the Gujarat Maritime Board on 28th August 1998.

Weeks later Petronet-LNG backed down, and agreed to stick to the LoI terms and invited "Expressions of Interest" from contractors for the solid cargo port. Three submitted proposals, but Essar Projects was rejected, leaving Birla-backed Indo Gulf and the Adani Group.

Indo-Gulf is best placed to win the mandate as it already operates a captive jetty at Dahej for its 1.5m t/y copper smelting plant nearby and is keen to transform Dahej into a commercial port.