Petronet scouting for strategic partner for Gangavaram LNG terminal project
Petronet LNG Ltd is scouting for a strategic partner for its Rs 4,500-crore LNG terminal project being established at Gangavaram port in Visakhapatnam district, according to Managing Director and CEO A.K Balyan, Business Line reports.
He told reporters here on Tuesday that the terminal would have a capacity of 10 million tonnes per annum (initially 5 mtpa) and “presently pre-project works are going on. We have submitted the draft environment impact assessment report to the Andhra Pradesh Pollution Control Board and the public hearing will be conducted on November 9. We are getting the other approvals.’’
He said the front-end engineering design document was being prepared by Engineers India Ltd and it may be ready by November. The topography survey, soil analysis and other preliminary surveys would be completed in a few months and the contract may be awarded sometime during January or February 2013.
“It will take three years to construct the terminal and commission it, but we are also looking at another option which enables us to import LNG by 2014 or so. We are considering chartering a floating LNG storage and regasification unit and the company has already received expression of interest from bidders. We are weighing the options,’’ he said.
Foreign partner
Balyan said the company would retain more than 70 per cent of the equity with itself. It would offer a small portion (less than 10 per cent) to Gangavaram port and 10 per cent or so to a strategic partner from abroad who can bring in the technological support or who can be of help in sourcing LNG.
“We do not need a foreign strategic partner for finances, but for the other purposes. We are in search of one,’’ he added.
Kochi LNG terminal
He said the Kochi LNG terminal of the company being set up in a special economic zone near Kochi was in the advanced stage and it may be commissioned by January/February 2013. Its initial capacity was also 5 mtpa and the cost was similar to that of Gangavaram terminal.
He said the company was also expanding the capacity of Dahez terminal in Gujarat by 5 mtpa and it may be completed by 2015.
Director (Finance) R.K Garg said the LNG terminal at Gangavaram port would at present contribute rates not less than Rs 2,000 crore as valued-added tax to the exchequer of the AP Government.
There may not be much direct employment created by the terminal but the indirect employment and the contribution to the economic growth of the State would be enormous.
