BPCL mulls Rs 2,000-cr regasification LNG terminal in south India

Mumbai: To meet the growing demand for cleaner burning fuel in the country, Bharat Petroleum Corporation Ltd (BPCL) has renewed its plan to build a regasification terminal for imported liquified natural gas (LNG) with an estimated cost of Rs 2,000 crore, a BPCL official said. The state-run oil marketer is considering setting up its terminal in Kakinada, Krishnapatnam, Mangalore or Gangavaram. The regasification liquefied natural gas (R-LNG) terminal — with a 1-to-3 million tonnes per annum (mtpa) capacity — was planned to be expandable to 5 mtpa later.

"BPCL is currently deliberating its options for setting up the LNG terminal. It is exploring locations on both the east and west coasts. It may cost BPCL around Rs 2,000 crore," the official said.

Another official added that BPCL may also look at booking capacity in the LNG terminals in the country. BPCL spokesperson, however, said that currently, it is not considering any such proposal.

In recent years, BPCL has not made advancements in their plans to set up terminals for importing LPG. In 2017-18, however, the public sector marketer formed Bharat Gas Resources Ltd, an entirely owned gas subsidiary, in order to focus on natural gas as a separate business.

With India – in an attempt to reduce its carbon footprint – hoping to enhance the share of gas in its energy mix from around 6.5 percent presently to 15 percent in the next few years, the need for clean fuel has positive long term implications.