Indian import LNG terminal construction to begin in November

Mr. Veerappa Moily, Indian Minister for Petroleum and Natural Gas, has stated that the construction of an LNG import terminal at Mangalore will commence in November 2013.

Survey

At present, companies ONGC, Bharat Petroleum Corp Ltd. (BPCL), Mitsui and New Mangaloe Port Trust (NMPT) are surveying the feasibility of the LNG terminal, having signed a memorandum of understanding (MoU) earlier this year. The LNG terminal is set to have a capacity of 2 – 3 million tpy, with a view to extension to 5 million tpy at a further date.

Moily said that Gas Authority of India Limited (GAIL) would carry out a survey for the extension of the Dhabol-Bangalore gas pipeline to Mangalore, which would run between Chitradurga and Bangalore.

2018 completion target

It is anticipated that the LNG terminal at Mangalore will be completed by 2018, costing between US$ 500 – 700 million. ONGC, who hold the largest stake in the project, were also responsible for the construction of Mangalore’s 15 million t gas plant. The New Mangalore Port, which has been running since 1974, is available to accommodate LNG tankers.

Small-scale LNG

GAIL, Moily said, has provided financial backing to the Karnataka government for investment in infrastructure that will handle compressed natural gas (CNG) in Bangalore city. "We have sent a proposal to the state government extending our help for setting up CNG infrastructure. If the state government is ready to buy CNG-run buses for Bangalore city, we can supply them CNG immediately. This will help in reducing pollution in the city of Bangalore, and has already been achieved to a large extent in Delhi and Mumbai."

Edited from various sources by Ted Monroe

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