Gas Authority of India Limited (Gail) and Indian Oil Corporation (IOC) signed a memorandum of understanding (MoU) to join Adani Group promoted Rs 5,000-crore ($805 mln) Dhamra LNG Port (DPCL) project on the Odisha coast.
The MoU comes within weeks of GAIL dropping plans to set up a floating LNG import terminal at Paradip. IOC too had in 2012 signed a MoU with Dhamra LNG Port Corp Ltd (DPCL) to develop a liquefied natural gas (LNG) terminal at the port.
According to a Gail statement, the two public sector Maharatna companies have signed the MoU with Dhamra LNG Terminal Private Limited for setting up 5 million tonnes-ayear LNG import terminal.
As per the terms of MoU, IndianOil and GAIL would reserve regasification capacity in the Terminal to supply regasified LNG in the emerging gas markets in the eastern part of the country. IndianOil and GAIL would also have the option to hold equity in DLTPL at a later date.
DLTPL’s project shall be an onshore LNG regasification terminal having initial capacity of 5.0 MTPA, at Dhamra Port in Bhadrak district of Odisha. Dhamra is an all-weather deep water port.
Dhamra will be the sixth LNG project announced on the east coast. It can meet all of the demand in Odisha and Andhra Pradesh.