Plans are getting underway to develop India’s first large LNG import terminal. The terminal would have the capacity to provide bunker as well as fuel industry in the western Indian state of Karnataka.
Namely, the Government of Karnataka through the New Mangalore Port Trust (NMPT) signed an agreement with Singapore-based LNG Alliance to develop the LNG terminal.
Over the next three years, LNG Alliance intends to invest around $290 million to develop, construct, and operate a Floating Storage and Regasification Unit (FSRU), and manage the LNG supply.
At first, the capacity will be four million tons annually (MTPA), with provision for LNG virtual pipelines and an LNG bunkering facility.
It will also have be able to expand up to 8 MTPA to meet the estimated demand increase over the next twenty years.
This will also be India’s first LNG bunkering facility that will be providing LNG for ships visiting the port and bunkering shuttles to the west coast of India.
Commenting on the development, Dr. Muthu Chezhian, the Chief Executive Officer of LNG Alliance, Singapore, stated that:
We see this as an important step to meet India’s cleaner energy goals of phasing down coal-fired powerplants and transitioning to an emission-free economy using LNG as a bridging fuel … This terminal will also be open for third party access and will provide the most competitive tolling rates in India, based on the LNG sourced from our supply partners
