GSPC to enter LNG shipping
After announcing the ambitious third LNG terminal in Gujarat, the state-owned Gujarat State Petroleum Corporation (GSPC) is now exploring business opportunities in the LNG shipping business.
By Harit Mehta & Abhishek Shanker, TNN |
AHMEDABAD: After announcing the ambitious third LNG terminal in Gujarat, the state-owned Gujarat State Petroleum Corporation (GSPC) is now exploring business opportunities in the LNG shipping business.
The company is working on a Rs 5,000-crore project to set up a joint venture company for transporting LNG for its proposed LNG terminal, which will come up either at Pipavav or Mundra in western Gujarat.
The companies with which GSPC could tie up for a possible joint venture are GE Shipping, Varun Shipping and the joint venture company set up by Shipping Corporation of India and Mitsui, say sources in the Gujarat government.
GSPC is looking to set up an LNG shipping company, which would own LNG tankers with a capacity of 1.30 lakh to 2 lakh cubic metres and would transport LNG from liquefication facilities to proposed terminals or LNG re-gasification terminal.
The LNG transport facility, or LNG ships, would be used to bring LNG from the suppliers in Middle East and other countries. LNG would then be supplied to the existing and proposed LNG terminals at Pipavav or Mundra.
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Thecompany is talking with companies that operate their own LNG carriers. GSPC is looking for a joint venture partner, which will transport all the LNG required by GSPC’s proposed LNG terminal. “The idea is to ensure continuous LNG supplies which will be possible if we have our own LNG transport company. GSPC will invite expression of interest after the location of the proposed LNG terminal is finalised,” a company source told ET.
A senior government official said the decision regarding the location of the LNG terminal should be finalised by November end following which expression of interest (EoI) for the LNG shipping company will be invited.
Industry sources say there would be immediate requirement of about two LNG ships for 5mmtpa terminal and could go six once the LNG terminals are fully operational.
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According to industry sources, the demand of natural gas in the state is likely to go up to 90mmscmd over the next three-four years. “Gujarat already has two LNG terminals at Dahej and Hazira with total capacity of 7.5mmtpa. Post expansion of LNG terminal at Dahej, the total capacity in State would be 12.5mmtpa. New LNG terminal is proposed at Pipavav/ Mundra with 5mmtpa capacity,” said a government source.
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