Terminal Name: Mundra Port LNG > Project Overview

December 30, 2009: “Mundra Port will become the country’s number one port in terms of handling cargo, including LNG, by crossing its own target of handling 100 million metric tons by 2012-2013,” said Gautam Adani, chairman of the Adani Group, according to India’s Petroleum Bazaar.

The company intends to double its ownership in the proposed LNG terminal to 42% now that Essar Oil has backed out. Essar had hoped to locate the terminal adjacent to its huge Vadinar refinery, but the Gujarat government declined to approve the site.

This is good news for Adani, which views LNG as an essential part of its plans for the Mundra Special Economic Zone port. See map. LNG will fuel the region’s power supply. “There are limitations of resources for power generation, and LNG will help in overcoming it,” Adani told Petroleum Bazaar. “We are targeting power generation of 12,000 MW from the power plant we are setting up in Mundra in various stages.” If successful, the LNG terminal will be the third in Gujarat State, following the terminal at Dahej, which is operated by Petronet LNG, and the one at Hazira, operated by Royal Dutch Shell. The Mundra port terminal is expected to cost US$750 million (Rs 3,500 crore).

January 6, 2009: Gujarat State Petroleum Corporation (GSPC) may have to relocate its proposed LNG terminal at Mundra Port, according to The Hindu Business Line. The new site will also be located within the peripheries of the Mundra Port; a new project site is being proposed in order to reduce a heavy expenditure on land filling and reclamation, as well as to accommodate a larger terminal. The alternate location for the terminal may be finalized as early as next week, according to reports. GSPC holds a 50% stake in the project. Mundra Port LNG will be completed within the scheduled time frame of 2012. GSPC has intimated that the plant may be built with much more capacity than previously stated.

June 10, 2008: The final 25% stake in the 10 million ton per year (1.4 billion cubic feet per day) Mundra Port LNG project has been taken by Hindustan Petroleum Corporation Limited. The Adani Group, who also operates the private port of Mundra, has already acquired a 25% interest in the receiving and regasification project, whereas the Gujarat State Petroleum Corporation controls the remaining 50% interest. The project is expected top be commissioned in 2012.

May 28, 2008: GSPC has unveiled plans to construct a 5 MMTY LNG terminal by 2013.  The regasification terminal will be located in southwestern India, at the private port of Mundra, which is operated by the Adani Group. According to the Managing Director of GSPC, the terminal’s capacity could be expanded to as much as 20 MMTY, as reported by Reuters.  The project currently has two stakeholders: GSPC with 50%, and Adani Group with 25%.  The remaining 25% share has been offered to Essar, but no agreements have been made.  In addition to Essar, HPCL has expressed interest in purchasing the remaining quarter share.  GSPC intimated to Reuters that if neither buyer works out, an IPO may be considered to finance the regasification project. More information about the terms of the deal may come to light in four to six months, when a project feasibility report is expected.