Reliance Industries-BP joint venture, Excelerate Energy of U.S. and Japan’s Mitsui are among the four in race to set up a Rs. 2,740 crore floating LNG import terminal at Mumbai.
RIL and BP’s equal joint venture India Gas Solutions, Mitsui, Excelerate Energy and a consortium of IMC and Norway’s Hoegh LNG are the four which bid for setting up of a floating LNG receipt terminal, industry sources said.
Mumbai Port Trust (MbPT) had invited bids for setting up of 5 million tonnes per year floating storage and re-gasification unit (FSRU) on PPP (public-private partnership) mode. The selected bidder will set up the FSRU as well as operate it on Design, Build, Finance, Operate and Transfer (DBFOT) basis, according to the tender document.
MbPT, one of the oldest ports in the country, is looking at a FSRU to meet the growing market demand of natural gas in the western coast of India. Mumbai will be the fifth LNG terminal on the west coast and the second in Maharashtra. Gujarat has two operational terminals — Petronet LNG Ltd’s 10 million tonnes a year at Dahej terminal and Shell’s 5 million tonnes at Hazira plant.
A third one is being constructed by Gujarat State Petroleum Corp (GSPC) at Mundra. In Maharashtra, GAIL operates a 5 million tonnes facility at Dabhol. Petronet also has a 5 million tonnes terminal at Kochi in Kerala.
According to MbPT tender document, the winner will have to set up a FSRU vessel with storage capacity of 170,000 cubic meters and 5 million tons per annum gas production capacity. It will also set up Marine terminal including of berthing and mooring facilities for FSRU and LNG carriers, pipeline to transfer the gas to onshore and landfall receipt facility.
MbPT has already applied to the Ministry of Environment and Forests for approval. Sources said MbPT wants state gas utility GAIL India Ltd to connect the port to the national gas grid at Uran.
MbPT has appointed Feedback Infra as the transaction advisor for the project, while Indian Institute of Technology (Madras) has carried out technical study. According to the tender document, the operator will be required to market the project and derive revenue from potential users. The prospective bidder will also have to carry out necessary market survey.
