Adani Ports to provide LNG re-gasification services to IOC at Dhamra
17 April 2018
Adani Ports and Special Economic Zone (APSEZ) has signed a long-term agreement with state-run Indian Oil Corporation (IOC) to provide Liquefied Natural Gas (LNG) regasification services at its upcoming LNG import terminal at Dhamra in Odisha.
Adani Ports, part of port infrastructure developer Adani Group, said under the 20-year contract, it will provide LNG regasification services to the state-run refiner on a use or pay basis.
Adani has started construction at Dhamra LNG terminal and the project will be commissioned in mid 2021. The terminal will be of strategic importance for gas supply to Bangladesh and Myanmar.
As per the contract, IOC has booked 3 million tonnes per annum (MTPA) regasification capacity spread over 20 years. IOC plans to supply the gas to its refineries in Paradip in Odisha and Haldia in West Bengal.
“We are pleased to partner with Indian Oil by signing this long-term agreement. India lacks adequate LNG import infrastructure at present and I am confident that this project will play a key enabling role for increasing gas consumption in that part of the country. In fact, the terminal will play a strategic role in gas supply to Bangladesh and Myanmar as well,” said Karan Adani, CEO, APSEZ.
The foundation stone of the project was laid and construction started in July last year. Larsen & Toubro has won the contract to set up the tankages for gas storage. The terminal is expected to be commissioned during the second half of 2021.
The Dhamra LNG import terminal will have an initial capacity of 5 MTPA, expandable up to 10 MTPA. Initially, it will have two full containment type tanks of 180,000 m3 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 Tamilnadu.
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 truck market.