GSPC considers new LNG terminal for Gujarat

Vol 10, PW 7 (27 Jul 06) News in Brief

GSPC is exploring the option of setting up a 2.5m t/y LNG terminal at either Pipavav in the Saurashtra region of Gujarat or at Mundra port in the Kutch region.

GSPCs rationale for a LNG terminal at Pipavav is that the Saurashtra region is much less developed than other parts of Gujarat and could flourish with a LNG terminal. GSPC is already planning a gas pipeline from Ahmedabad to Pipavav to transport gas from Hazira and, eventually, from its KG discovery.

GSPC believes this pipeline could have a reverse flow facility to enable R-LNG from Pipavav to reach other parts of Gujarat. Mundra is being considered by GSPC because of the massive inward investment into the Kutch region over the past five years.

State authorities are also considering setting up a tax-free Special Economic Zone at Mundra, which would attract industries and provide a ready market for R-LNG. British Gas was the first to identify Pipavav as a potential LNG facility but later shelved the idea.

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