HPCL-Shapoorji terminal Gets Clearance From MoEF

HPCL-Shapoorji terminal Gets Clearance From MoEF

PW Bureau

The project, set to be the fourth LNG terminal in the state, includes plans to build a 5 MTPA LNG terminal within the proposed area of Chhara port

New Delhi: The ministry of environment, forest and climate change (MoEF) has granted CRZ (coastal regulatory zone) and environmental clearance to HPCL Shapoorji Energy Private Ltd (HSEPL) for constructing a new liquefied natural gas (LNG) storage and re-gasification terminal at Chhara in Gujarat. The project, set to be the fourth LNG terminal in the state, includes plans to build a 5 million tonnes per annum LNG terminal within the proposed area of Chhara port.

HSEPL project

HSEPL is a joint venture between Hindustan Petroleum Corporation Ltd (HPCL) and Shapoorji Pallonji group's SP Ports Pvt Ltd (SPPPL). The project cost is expected to be Rs 5,408.82 crore.

"As per recommendations of the EAC (expert appraisal committee), the ministry hereby accords environmental clearance to the project 'development of LNG storage and re-gasification terminal' at village Chhara taluka Kodinar, district Gir Somnath, Gujarat by HPCL Shapoorji Energy Ltd," the ministry said in its recent notification.

The proposed LNG terminal will have LNG ship unloading jetty, LNG storage, LNG transfer and vaporization along with other infrastructure facilities and utilities.

"As per recommendations of the EAC (expert appraisal committee), the ministry hereby accords environmental clearance to the project 'development of LNG storage and re-gasification terminal' at village Chhara taluka Kodinar, district Gir Somnath, Gujarat by HPCL Shapoorji Energy Ltd,"

"The terminal will be provided with the latest state of art instruments and controls for safe handling of LNG and LNG terminal operation," the company said in its environment impact assessment (EIA) study.

Gujarat's three other terminals

Petronet LNG runs a 15 MTPA terminal at Dahej while Shell Gas operates a 5 MTPA terminal at Hazira. The third LNG terminal in the state is run by GSPL LNG Ltd at Mundra in Kutch, which was launched by Prime Minister Narendra Modi in October.

Natural gas demand in the country will likely increase at a compound annual growth rate of 3.5 percent between the fiscals 2018 and 2023, as per a recent research report by the rating agency CRISIL. The demand is expected to be between 191-193 million metric standard cubic meters per day (mmscmd) across India.

"Given the sustained domestic gas deficit, LNG demand is expected to increase at CAGR of 4-4.3 percent to 24.4- 24.7 million tonnes per annum (MTPA) between fiscals 2018 and 2023. Over the period, installed re-gasification capacity is forecast to increase to 50 MTPA from 26.7 MTPA (considering operational terminals only),"

"Given the sustained domestic gas deficit, LNG demand is expected to increase at CAGR of 4-4.3 percent to 24.4- 24.7 million tonnes per annum (MTPA) between fiscals 2018 and 2023. Over the period, installed re-gasification capacity is forecast to increase to 50 MTPA from 26.7 MTPA (considering operational terminals only)," the report added.

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