Adani Ports and Special Economic Zone said it signed a long term agreement with Indian Oil Corporation (IOC) to provide Liquefied Natural Gas (LNG) regasification services on a use-or-pay basis at its upcoming LNG import terminal at Dhamra in Odisha.
As per the contract, IOC has booked 3 million tonnes per annum (MTPA) regasification capacity for 20 years, which represents 60% of the total initial capacity of the terminal.
The project can eventually double its capacity to 10 MTPA, Adani PSEZ said. The terminal is expected to be commissioned during the second half of 2021, it added.
IOC plans to supply the gas to its refineries in Paradip in Odisha and Haldia in West Bengal, the infrastructure company said.
CEO of the company Karan Adani said the Dhamra LNG port will play a key enabling role for increasing gas consumption in Eastern India.
“In fact, the terminal will play a strategic role in gas supply to Bangladesh and Myanmar as well,” he said.
The foundation stone of the LNG project was laid on July’17 and construction by Larsen & Toubro, a leading infrastructure firm, has commenced, the company said.
L&T had won the contract to set up the tankages for gas storage.
Initially, the terminal will have two full containment type tanks of 180,000 cubic meter 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,” the company said.
The port will be able to handle even the largest vessels, such as the Q-max fleet from Qatar, the company said.
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, it added.
Adani Group is one of India’s largest integrated infrastructure conglomerates with interests in coal mining and trading, ports, logistics, shipping, railways, renewable and thermal power generation and agricultural industries.
The group owns and operates one of the world’s largest solar power plants in Tamil Nadu, India. It plans to produce 10,000 MW of renewable energy by 2022.