Swan Energy to Develop Pipavav LNG Terminal on Fast-track Basis

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Researched by Industrial Info Resources India (Delhi, India)--Because of the burgeoning demand for natural gas in India, Swan Energy Limited (SEL) (Mumbai, Maharashtra) has fast-tracked implementation of its floating liquefied natural gas (LNG) storage terminal and regasification unit, which are being developed at Pipavav Port, on the country's Western coast in Gujarat. The terminal, which was originally scheduled for commissioning in 2015, is now likely to be operational during the last quarter of 2013.

The LNG terminal will have a capacity of 4.5 million tonnes per year. Swan Energy has proposed an investment of $890 million for this ongoing project near Kovaya village, in the Amreli district of Gujarat. According to Swan Energy sources, a plan is also on the cards to further increase the capacity of the terminal to 10 million tons per year.

Swan Energy has hired BMT Consultants (Mumbai, Maharashtra) and Indomer Coastal Hydraulics Private Limited (Chennai, Tamil Nadu) as consultants for the terminal project. According to SEL sources, the company is finalizing the bid documents for the engineering, procurement and construction (EPC) contract, which is likely to be released during the second half of June 2012.

On completion, the terminal will supply approximately 800,000 tons of natural gas to Gujarat Pipavav Power Corporation's (GPPC) (Gandhinagar, Gujarat) upcoming 700-megawatt (MW) gas-fired power plant at Pipavav. The terminal will be connected to Gujarat State Petroleum Corporation Limited's (GSPC) (Gandhinagar, Gujarat) pipeline for supplying gas to the other users in the state.

The site for the terminal is very strategic, given the proximity of the Gujarat coast to the Middle Eastern gas sources. The large coast line and well-developed pipeline network in the state will help transport the gas.

Gujarat already has two operational LNG terminals at Dahej and Hazira with capacities of 10 million tons per year and 3.6 million tons per year, respectively. A third LNG terminal with a capacity 5 million tons per year is currently being developed at Mundra port by state-owned GSPC in a joint venture with Adani Enterprise Limited (BSE:512599) (Ahmedabad, Gujarat).

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