India’s first LNG terminal at Dahej dedicated to the Nation
Petroleum Minister Shri Ram Naik dedicated India’s first Liquefied Natural Gas (LNG) terminal at Dahej in Gujarat to the nation today. With this India also has joined the elite LNG club of few selected nations, which would help in providing much needed energy security to the country in its quest of becoming the developed nation. Shri Narendra Modi, Chief Minister of Gujarat, Smt. Sumitra Mahaja, Union Minister of State (P&NG) and Petroleum Secretary Shri B.K. Chaturvedi were also present.
As a path breaking initiative, an investment of Rs. 7500 Crores on shipping, Dahej port and regasification terminal, on land pipelines etc. has been made. Besides this RasGas has also made an investment of more than Rs. 5,500 Crores for developing offshore gas production and liquefaction facilities for supply of LNG to Dahej project.
The Re-gasified LNG from Petronet’s Dahej project would supplement the one third of existing indigenous gas supply in order to meet the deficit of natural gas for the core sectors of economy like power, fertilizer and other industries. The import of LNG would also help in meeting the demand of sectors like household and the need of city transportation system for compressed natural gas.
Regasified RLNG from Dahej LNG terminal will be distributed to consumers located in six States of Gujarat, Madhya Pradesh, Uttar Pradesh, Rajasthan, Haryana and Delhi through HBJ pipeline. RLNG will also be used by the consumers in the State of Maharashtra where a separate pipeline is being constructed by GAIL, which is likely to be completed by the end of 2004.
Petronet LNG Limited (PLL) was formed based on Government of India’s approval for setting up LNG import and regasification terminal in the country at suitable identified locations. PLL has been promoted by four Navratna Oil Companies i.e. Gas Authority of India Limited (GAIL), Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Limited (BPCL). Gaz de France, Europe leading gas Company has taken up 10% equity in the Company as a strategic partner. Asian Development Bank has taken 5% equity. The Company is also coming out with an Initial Public Offering of 35% equity to broad base its equity to public at large.
The first LNG terminal in South Asia was completed in 36 months, against a benchmark of 42 – 48 months for a grass-root LNG import terminals. There was no cost and time over run inspite of several challenges during the project execution. The terminal has flexibility for expansion, at a very low incremental cost, to handle LNG imports of 10 million tonnes per annum. PLL is conducting feasibility for expanding capacity of LNG terminal at Dahej.
The terminal has been constructed by consortium led by IHI, Japan who are the leaders of the EPC Consortium having constructed more than 50% of the LNG Tanks worldwide. For transportation of LNG the Company has entered into a Time Charter Agreement for 25 years with a shipping consortium led by Mitsui O.S.K. Lines who operate the largest number of LNG Tankers worldwide.
The Company has tied up for 25 years 5 Million tones LNG purchase, LNG shipping and RLNG sales agreements. LNG purchase agreement was signed with RasGas, having the largest reserve of Natural Gas. RasGas has developed 4.7 Million Tonnes per annum, largest capacity LNG Train in the world, for Petronet’s project. The Company has entered into Sales Agreements with GAIL, IOCL and BPCL for the entire 5 Million Tones. These Companies in turn, have tied up sales of the entire quantity of gas with enc consumers.
(Release ID :1057)