Adani Port sinks deal with IOC

Business Standard - - COMPANIES - ADITI DIVEKAR

Gau­tam Adani-led Adani Ports and Spe­cial Eco­nomic Zone (APSEZ) has signed a long-term agree­ment with In­dian Oil Cor­po­ra­tion (IOC) to pro­vide liq­ue­fied nat­u­ral gas (LNG) re­gasi­fi­ca­tion ser­vices at its up­com­ing LNG im­port ter­mi­nal at Dhamra in Odisha.

Ac­cord­ing to the con­tract, IOC has booked a 3 mil­lion tonne per an­num (mtpa) re­gasi­fi­ca­tion ca­pac­ity spread over 20 years and IOC plans to sup­ply this gas to its re­finer­ies in Paradip in Odisha and Hal­dia in West Ben­gal, the com­pany said. The long-term con­tract is on a use or pay ba­sis. “We are pleased to part­ner with IOC. In­dia lacks ad­e­quate LNG im­port in­fras­truc­ture at present and I am­con­fi­dent that this project will play a key en­abling role for in­creas­ing gas con­sump­tion in that part of the coun­try. In fact, the ter­mi­nal will play a strate­gic role in gas sup­ply to Bangladesh and Myan­mar,” the com­pany's press re­lease quoted Chief Ex­ec­u­tive Of­fi­cer Karan Adani as say­ing.

Larsen & Toubro is set­ting up tank ages for gas stor­age at the ter­mi­nal, which is ex­pected to be com­mis­sioned dur­ing the sec­ond half of 2021.

The pro­posed Dhamra LNG im­port ter­mi­nal is de­signed for an ini­tial ca­pac­ity of 5 mtpa, ex­pand­able up to 10 mtpa.

Ini­tially, it will have two full con­tain­ment type tanks of a 180,000 mt each. This ter­mi­nal will be a first of its kind in In­dia and the first LNG ter­mi­nal on the east coast af­ter IOC’s En­nore ter­mi­nal at Tamil Nadu.

It will have a jetty ca­pa­ble of han­dling a wide range of LNG sup­ply ves­sels, in­clud­ing the largest Q-max fleet from Qatar.

The ter­mi­nal will be ca­pa­ble of reload­ing LNG to ser­vice prox­i­mate mar­kets via the marine route and will also have truck load­ing gantries to help the nascent but LNG by truck mar­ket.

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