Adani Ports and Special Economic Zone Ltd (APSEZ), leading port infrastructure developer and part of the Adani Group, on Thursday, said it has signed a long-term agreement with state-run GAIL (India) Ltd to provide Liquefied Natural Gas (LNG) regasification services on a use-or-pay basis, at its upcoming LNG import terminal at Dhamra in Odisha.
As per the contract, GAIL India has booked 1.5 million tonnes per annum (MTPA) regasification capacity for a period of 20 years. GAIL plans to supply gas to its customers in the eastern region and along the Jagdishpur–Haldia gas grid, which is under-development.
This project is now close to being fully subscribed and will play a pioneering role in powering eastern India towards a economical gas-based future. It will also become a hub for supply to Bangladesh and Myanmar, said Karan Adani, CEO, APSEZ, in a statement.
The 5 MTPA Dhamra LNG terminal now has a capacity subscription of 4.5 MTPA. It will be commissioned in 2021. The foundation stone of the project was laid in July 2017 and construction was commenced by Larsen & Toubro, which won the contract to set up the tankages for gas storage, and by CTCI Corporation, a Taiwanese firm, that has won the contract for the regasification package.
The proposed Dhamra LNG import terminal is designed for an initial capacity of 5 MTPA, expandable up to 10 MTPA. Initially, it will have two full containment type tanks of 180,000 cubic metres capacity each. It will be first of its kind in India and second LNG terminal on the east coast after IOC’s Ennore terminal in Tamil Nadu.
It will have a jetty capable of handling a wide range of LNG supply vessels, including the largest Q-max fleet from Qatar. The terminal will be capable of reloading LNG to service proximate markets via the marine route and will also have truck loading gantries to help grow the nascent but exciting LNG by the truck market.
APSEZ has 10 ports and terminals on both the western and eastern coastline of India at Mundra, Dahej, Kandla and Hazira in Gujarat, Dhamra in Odisha, Mormugao in Goa, Visakhapatnam in Andhra Pradesh and Kattupalli and Ennore in Chennai, representing 24 per cent of India’s total port capacity. The company is currently developing a transhipment port at Vizhinjam, Kerala.