GVK to develop LNG terminal in Gujarat

AHMEDABAD: GVK Power and Infrastructure Ltd has inked an agreement with the state government for developing a new terminal for importing gas at Okhamadhi in Jamnagar district of the state. Gujarat already has two LNG terminals at Dahej (operated by Petronet LNG) and Hazira (owned by Shell India and Total of France).

GVK will be investing Rs 7,000 crore to develop the LNG terminal along with a private coal terminal and Maritime city at Okhamadhi. Company's vice-president GV Sanjay Reddy signed an agreement with the Gujarat government on the second day of the Vibrant Gujarat Global Investors’ summit that saw over Rs 1 lakh crore of agreements been signed for investments into the port sector of the state.

According to official sources, India's current annual gas use of 62 billion cubic meters (bcm) is set to rise to about 120 bcm by 2015. Most of this import is expected to happen through the LNG terminals as the country’s attempt to import gas from Iran via a pipeline through Pakistan is unlikely to become a reality anytime soon. Two more LNG terminals are coming up in Dabhol and Kochi on the west coast of India.

The agreements that have been signed on Thursday will double the capacity of the Gujarat minor ports from the existing capacity of 273 metric tonnes. The minor ports of Gujarat along with Kandla presently handle one-third of the national cargo.

Among the agreements that were inked today include those by Housing Development and Infrastructure Ltd to develop a dedicated shipyard for defence ships in Gujarat at the cost of Rs 700 crore. The Adani Group stood out as the largest investor, promising to invest over Rs 17,000 crore. The investments have been for the development of bulk and general cargo terminal at Hazira, developments in Mundra including a Single Point Mooring (SPM) facility and expansion work at Dahej.

Essar Bulk Terminals Ltd inked two MoUs totalling over Rs 8100 crore for expansion of the existing 550 meter deep water terminal by 1100 meter including reclamation of about 1051 hectares area at Hazira. The second agreement deals with expansion of the Salaya jetty which is presently under construction for coal handling.

Sterling Port Ltd signed Rs 5400 worth MoU for phased development of SEZ linked port facilities at Dahej. Shapoorji Paloonji Co Ltd, ABG Shipyard and POL Inda Agencies Ltd signed MoUs worth Rs 5,000 cr, 4100 cr and Rs 3,000 cr respectively.

The list of MoUs also had Indian Navy sign an MoU of Rs 50 crore for development in Porbandar. The developments also included development of a maritime college by Cargo Motors Pvt Ltd and a housing colony for workers of the shipbreaking yard at Alang.