18 December 2013 07:28 [Source: ICIS news]
KOLKATA (ICIS)--India’s Petronet LNG Limited (PLL) will expand capacity of its liquefied natural gas (LNG) terminal at Dahej in western India to 15m tonne/year from 10m tonne/year entailing an investment of $484m (€353m), a company official said on Wednesday.
The expansion of the terminal located in western Indian province of Gujarat was part of PLL’s scaling up of operations after the initial capacity of 5m tonne/year in 2004 was doubled to 10m tonne/year in 2009 based on rapid increase of the fuel in the region, the official said.
The current increased capacity will be utilized to meet demand in northern Indian markets, the official added.
The Manila-headquartered Asian Development Bank (ADB) will provide $150m debt to partly fund the expansion project, the official said.
PLL has also signed a long-term contract of 19 years with a consortium of shipping lines comprising Shipping Corporation of India (SCI), Mitsui OSK Lines, NYK Line Limited and K Line Limited to transport LNG from Gorgon fields in Australia to PLL’s 5m tonne/year terminal at Kochi in southern India that was commissioned four months ago, the official said.
SCI will be handling the transportation vessel on behalf of the consortium with the latter placing an order of a $200m ship to be built by Hyundai, South Korea, he added.
The order for a new vessel was necessary since four ships owned by the shipping consortium had already been contracted to transport LNG from Qatar to PL’s Dahej terminal, the official said.
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