Gujarat state prefers Hazira for LNG terminal

MUMBAI�The state government of Gujarat, India, this week said it has made clear its preferred choice among the four potential sites under consideration for LNG terminals in the state. The authorities are putting their weight behind the Royal Dutch/Shell Group, which has identified Hazira as the preferred location for starting an LNG terminal and regasification complex.

Three proposed LNG destinations, in various stages of progress, in Gujarat include Dahej, being promoted by the state-owned Petronet LNG Ltd.; Pipavav, with BG PLC as the main promoter; and Maroli, which recently experienced a setback when Unocal Corp. pulled out of the proposed project.

�For the Gujarat government, Hazira is the priority destination for the LNG terminal, above the other three,� said Kaushik Patel, state minister for energy. �We are committed to ensure that the Hazira LNG terminal comes up at the earliest.�

Industry watchers have persistently maintained that there is need for only one LNG terminal in the state. The government�s ambitious plan to put up a statewide gas grid has been viewed with some skepticism in these quarters.

The company that launches the first terminal will have a significant advantage, the sources say.

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