To cater & full fill the rising demands of LNG in Indian market, Operators at Hazira LNG terminal decided to increase the annual capacity to 10 million tones per annum (MTPA), the news come from Business Standard source. Hazira LNG Terminal is the country’s first LNG import set up. Shell & Total are the major operators of Hazira LNG terminal which has been operated at a capacity of 3.6 million tones currently. Company has not yet updated any official status about this project. If the news is correct then annual production would reach almost 5 Mt more than present production.
Press Statement from Business Standard
“With new gas pipelines being laid and LNG consumption in the country on an increase, more gas would be required. To meet the market requirement for future we intend to increase the terminal’s capacity to 10 mtpa,” a senior company executive told Business Standard on condition of anonymity.
Increase in capacity may cost to company about 4000 Cr INR, depending on the availability of technology for Re-gasification method. As company is initially considering all the options open to them, costing would be totally depending on the total tanks nos & viable technology availability. Shell uses the Hazira terminal entirely for regasifying the spot LNG imported from outside the country, as part of a global business strategy. Environmental clearance may play a crucial role for company’s expansion plan since Coastal extension is a critical issue in the Hazira region specially. Sudden lapses in the country’s total crude production have forced Govt to get other options as like Spot LNG (Hottest Option).
According to reports in media, India’s natural gas supply was badly affected during 2011-12 financial term due to the KG-D6 fall as to actual production. Spot LNG seems as viable solution to recover the country’ energy cum economy crisis as environmental stability also required here. Lot more LNG projects are expected to hit Indian market soon as Kochi terminal will be starting this year only, whereas Reliance, Shell, GSPC, Adani, Petronet, L & T like other players planning to enter into this futuristic business. LNG penetration is much more calibrated in Indian economy after the success of Petronet LNG project. Politically also, LNG appears as the only reliable option to the Govt to avoid energy crisis in future as Nuclear & Coal projects went under the saturation state, as observed due to environmental volatility. Crisis would remain in the economy until unless we fit ourselves as technology boosted potential infrastructure to sustain the growth rate.
News Courtesy: Business Standard