January 16, 2022 [PSUWATCH] – Petronet LNG Ltd, India’s largest liquefied natural gas importer will set up a floating LNG receipt facility at Gopalpur port in Odisha at Rs 2,306 crore.

The company has signed an agreement with Gopalpur Ports Ltd for the facility that will have a capacity of about four million tonnes per annum, it said in a tweet.

Petronet LNG signs a pact with Gopalpur Ports Ltd on Dec 14

“We are pleased to inform that Petronet LNG Ltd is heading forward in establishing its presence on the east coast of India by signing a term sheet with Gopalpur Ports Limited on December 14 for establishing and operating LNG terminal at Gopalpur port in Odisha,” it said. Last month, the company’s board had accorded investment approval for setting up the floating storage and regasification unit (FSRU) based LNG terminal at Gopalpur.

Petronet’s project in the Ganjam district in Odisha, which is expected to be operational before the end of 2025, will be financed by a combination of debt and equity.

Gopalpur to become third LNG terminal on east coast

Gopalpur will be the third LNG terminal on the east coast. Indian Oil Corporation (IOC) operates five million tonnes a year facility at Ennore in Tamil Nadu while Adani Group in partnership with TotalEnergie of France is building a facility at Dhamra port.

Petronet management had previously stated that the FSRU-based receiving and regasification scheme has the provision to be converted in the future to a land-based terminal with an expected capacity of five million tonnes per annum. The firm is planning to charter hire an FSRU for the Gopalpur terminal with a target to meet the increasing gas demand of the eastern and central parts of the country.

Petronet operates two land-based terminals at Dahej & Kochi

Currently, Petronet operates the 17.5 million tonnes per annum terminal at Dahej in Gujarat and a five million tonnes facility at Kochi in Kerala. The Dahej terminal is undergoing expansion of a capacity of 22.5 million tonnes. Both are land-based terminals.

Petronet is adding five million tonnes of extra capacity at Dahej which is already the world’s largest LNG import facility. It is constructing a new jetty that will also be able to handle propane and ethane shipments, and more LNG storage tanks and bays for loading trucks.

State-owned IOC, Oil and Natural Gas Corporation (ONGC), GAIL (India) Ltd and Bharat Petroleum Corporation Ltd (BPCL) each hold a 12.5 percent stake in Petronet.

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