Reliance Industries Ltd (RIL) is considering putting up a $ 1.2 billion liquefied natural gas (LNG) import terminal on the east or west coast to meet demand at its refineries and petrochemical plants.
According to an unnamed source cited in an Indian Express report, Reliance's requirement of the fuel is around 14 MMSCMD at its twin refineries at Jamnagar in Gujarat. It also needs gas at its petrochemical plants.
The company had first contemplated the facility back in 1997, but plans for a 5-MT per annum port terminal were later held back, the report said.
The company had at that time envisaged receipt of LNG transported from overseas via cryogenic ships and a re-gasification of the liquid cargo.
The company is now thinking of reviving the plan as it is not able to use the natural gas from the eastern offshore KG6-D6 field given that its twin refineries at Jamnagar have been allocated only 2.34 MMSCMD of the 60 MMSCMD of gas that the government has earmarked for various users.
Reliance is reported to be buying LNG from Royal Dutch Shell at prices that are in double digits as against a delivered price of $7 per million Btu of KG-D6 gas.