Energy exploration firm Oil & Natural Gas Corp (ONGC) and Bharat Petroleum Corp (BPCL) would soon enter into a Memorandum of Understanding (MoU) for the liquid gas (LNG) import terminal project at Mangalore.
The first phase of the terminal will cost $500-750 million (Rs 2,800 to 4,200 crore) and is expected to be completed in 3-4 years.
Mitsui of Japan and New Mangalore Port Trust would also sign the agreement as partners of the project, reports indicate. The feasibility study for the project would be conducted soon and the New Mangalore Port Trust (NMPT) has already given 'no objection' for the study.
A consortium of the above companies plan to set up the terminal, which will have an initial capacity of 2-3 million ton and which can be expanded to 5 million tonne later. An investment decision is expected by early 2014.
The consortium aims to commission the terminal by 2018. The MoU would be signed in presence of Oil Minister M Veerappa Moily, who has been behind revival of the Mangalore LNG terminal that had been put in cold storage by ONGC six years ago.
BPCL owns an equity stake in a giant gas field off Mozambique and it can ship its share of gas as LNG to Mangalore.