By Shirish Nadkarni
An OGJ Correspondent
MUMBAI, Sept. 24 -- Royal Dutch Shell Group subsidiary Hazira Port Pvt. Ltd. anticipates completing in third quarter 2004 its planned Hazira LNG regasification terminal on India's northwestern coast. Commercial operations would begin in October-December 2004.
About 50% of the construction work already is complete, and $260 million of the projected $600 million investment expended.
The company now is quite anxious to secure a 3 million tonne/year natural gas supply contract tendered by the National Thermal Power Corp. ahead of state-owned Petronet LNG, whose 5 million tonne/year terminal at nearby Dahej is almost complete.
"It is a slick marketing move by Shell, as it strikes a psychological blow with its potential clientele," said an energy expert, requesting anonymity.
"The first LNG vessel is set to reach the Gujarat shores by December this year;" the source said, "and it will dock at Dahej, not Hazira. Therefore, Petronet, with its marketing partner Gas Authority of India Ltd., will be the first to make LNG available in Gujarat. Shell obviously hopes to make its shout heard at higher decibel levels."
In a recent trip to India, Shell's Group Managing Director Malcolm Brinded pressed India's Comptroller and Auditor Gen. for certification that the group has invested $435 million in India, which would give Shell the right to market petroleum products in the country.