Paradip port

Paradip, July 17: The port trust will shortly establish a Gas Authority of India Limited-run liquefied natural gas (LNG) terminal here.

A draft proposal in this regard was passed unanimously at its board meeting yesterday. The draft memorandum of understanding has been sent to the Union ministry of shipping for approval.

GAIL, a government of India undertaking, had expressed interest in setting up a terminal at the Paradip port. A team of GAIL officials had visited the port and expressed satisfaction over the logistics and infrastructure available there. The GAIL-run terminal will have a capacity of 5-million-tonne-per-annum, said an official.

Earlier, the Indian Oil Company shied away from setting up a five-million-tonne-per-annum LNG terminal here because of unavailability of land. The IOCL had inked an agreement with Dhamra port for the LNG terminal last year. However, the LNG terminal project of the oil company has not yet started at Dhamra because of land-related issues.

An LNG terminal requires 1,600-metre long island breakwater system. There is adequate area for berthing of LNG-carrying ships only on the southern side of the port. The terminal will be equipped with a berthing floating storage and re-gassification unit.

The Paradip Port Trust is located in a strategically advantageous position for the LNG terminal. The location of the Paradip refinery project near the port is an additional advantage. The establishment of the LNG terminal will give a boost to the port’s annual revenue.

Chairman of the Paradip Port Trust Sudhansu Sekhar Mishra said: “The draft agreement for the GAIL’s LNG terminal was discussed in detail at a special meeting of board trustees. A resolution to this effect was also adopted.”

Pravat Samantaray, a trustee member of the port trust, said: “The establishment of the LNG terminal will go a long way in strengthening the port economically.”