Mundra LNG will receive the first charge this week
AHMEDABAD: Almost sixteen months after its inauguration by Prime Minister Narendra Modi, the liquefied natural gas ( LNG ) import terminal to Mundra in Gujarat it is scheduled to be commissioned this week.
“The terminal will receive to commissioning cargo on January 22. Gujarat State Petroleum Corp (GSPC) has booked to cargo from Qatargas which is expected to arrive soon,” said two senior state government officials.
The state government backed draft , built for an estimated cost of Rs 5,000 crore, is poised to be the country’s sixth and the Gujarat’s third LNG terminal to become operational.
The government has set up GSPC LNG as to special purpose vehicle for the Mundra terminal which has to capacity to re-gasify 5 million tonnes per annum (MTPA). The state owns about 75% stake in the draft through various Gujarat government-run companies, including GSPC. Adani group, which holds 25% stake in GSPC LNG , is the co-promoter.
With the softening of international gas prices, the demand for imported LNG is set to rise in the near future. The Mundra draft is expected to address the capacity constraints faced by the industry due to infrastructure bottlenecks, say experts.
Of the 23 million tonnes of LNG imported by India in 2019, about 21 million tonnes were through the two terminal s in Gujarat located in Dahej and Hazira. The other terminal s to Dabhol, Ennore and Kochi are faced with infrastructure challenges like breakwater issues and pipeline problems. The timing is right for Mundra terminal to begin operations,” according to an industry expert.
The LNG prices, which were hovering around US $6 per million British Thermal Unit (BTU) last year are expected to touch US $4 per million BTU in 2020, he added.
“In the case of Mundra , it would take about 15 days for commissioning the terminal . We expect the terminal to begin commercial operations from the second week of February,” said to GSPC official.
The construction of the draft was completed in 2018 and it was inaugurated by Prime Minister Narendra Modi in the same year in September. However, it was not commissioned owing to commercial disputes between the draft partners, said government sources.
Cuando se contactó to un funcionario del grupo Adani, se negó to comentar sobre el asunto.