GSPC LNG Scouts for EPC Contractor to Build Mundra LNG Terminal

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Researched by Industrial Info Resources India (Delhi, India)--State-owned Gas Company GSPC LNG Limited (GLL) (Gandhinagar, Gujarat) is scouting for a vendor to construct an LNG import, storage and regasification terminal at Mundra in Gujarat. GLL is planning to construct the terminal in two phases; the first phase envisages construction of a 5 million-metric-ton-per-annum (MMTPA) terminal, which will be expanded up to 10 million metric tons per annum at a later phase. GSPC LNG Limited recently floated a global tender for hiring an engineering, procurement and construction (EPC) contractor for the storage and regasification terminal.

The $740 million LNG terminal is expected to go on stream by the first quarter of 2016. According to GLL sources, all major pre-construction activities, along with front-end engineering & design (FEED), have been completed. GLL has hired Whessoe Project Limited (Darlington, England) as project management consultant (PMC) for the project. The 5-million-metric-ton-per-annum LNG terminal has been designed to have a berth for receiving LNG tankers ranging in size from 75,000 to 260,000 cubic meters, along with two LNG storage tanks and facilities for regasification and gas evacuation.

The proposed terminal at Mundra will be the third on-land LNG terminal in Gujarat. The state currently has two operational LNG Terminals: Petronet LNG Limited's (BSE:532522) (New Delhi) 10-million-metric-ton-per-annum terminal at Dahej and the 3.6-million-metric-ton-per-annum Hazira LNG terminal, owned by a joint venture of Shell India and Total Energy Services Incorporated. A fourth LNG Offshore Terminal (FSRU) has been also proposed at Pipavav, in the Amreli district of the state, by Swan Energy Limited (BSE:503310) (Ahmedabad, India).

GSPC LNG Limited was set up in 2007 to develop the LNG terminal at Mundra. GLL is a joint venture between Gujarat State Petroleum Corporation (GSPC) (Gandhinagar Gujarat, India) and Adani Enterprise Limited (BSE:512599). GSPC is the majority stake owner with 50%, while Adani Group owns 25%. GSPC has been scouting for a strategic investor, after Essar Group (BSE:500134) (Mumbai), the third partner with another 25% stake in the venture, backed out from the proposed LNG terminal project.

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