GAIL India and Paradip Port Trust may soon sign a memorandum of understanding (MoU) to set up an LNG terminal, most probably offshore at the port.
GAIL (India), the largest state-owned gas processing and distribution company, proposes to set up an LNG terminal, most probably offshore, at the port.
GAIL reportedly plans to set up the terminal with an initial capacity of around 4 million tonne in the first phase and this may be doubled in the second phase. GAIL is already working on the Surat-Paradip pipeline project.
The boards of directors of both GAIL and PPT have cleared the proposal, reports indicate. The procedural formalities are being worked out.
It may be recalled that GAIL is already working on the Surat-Paradip pipeline project which is a 1,550-km long pipeline network with the capacity of 60 million standard cubic metres per day (mscmd).
The Rs 9,000 crore project would link Mora (Gujarat) on the west with Paradip (Odisha) on the east after passing through Maharashtra and Chhattisgarh.
The project is believed to have already become a prized asset with several companies both in the private and public sector having evinced interest in acquiring stake in the joint venture to be formed by GAIL.