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Paradip Port signs MoU to set up LNG terminal

31 Oct 2013

October 31: Paradip Port Trust has signed a memorandum of understanding (MoU) with GAIL (India) Ltd to set up an LNG terminal as part of its capacity augmentation programme, a government release said.

An offshore breakwater is also proposed to be constructed simultaneously to improve navigability of capesize vessels in the approach and entrance channel, the release said.

GAIL envisages setting up the project with a send-out capacity of 4 million tons per annum (mtpa) in phase I with a storage capacity of 170,000 cubic meters. This will entail a total investment of Rs 3,108 crore out of which Paradip Port would invest Rs 650 crore in breakwater and dredging and the balance Rs 2,458 crore will be invested by GAIL.

Considering the long-term potential of the market along the east coast, it is likely that phase II of the project will also have an additional capacity of 4 mtpa, which will take the overall terminal capacity to more than 8 mtpa, the release added.