Shell to double capacity at proposed Indian LNG terminal

Oil giant Royal Dutch/Shell Group has decided to double capacity of the liquefied natural gas terminal it proposes to set up at Hazira in south Gujarat to 5 million tonnes/year from 2.5 million tonnes/year. The first phase of the Shell terminal, whose construction is slated to begin in January 2000, will cost 230 billion rupees.


NEW DELHI�Oil giant Royal Dutch/Shell Group has decided to double capacity of the proposed liquefied natural gas (LNG) terminal at Hazira in south Gujarat to 5 million tonnes/year from 2.5 million tonnes/year.

On a two-day visit to Gandhinagar, capital of Gujarat, Shell Gas & Power CEO Linda Cook said Shell expects to tie up with Gujarat Narmada Fertilizer Corp., Indian Petro-chemicals Corp. Ltd., the Gujarat Electricity Board, and Essar to supply LNG as a source of fuel.

Cook added the �good response� from the proposed customers had prompted Shell to increase the terminal capacity.

The first phase of the Shell terminal, whose construction is slated to begin in January 2000, will cost 230 billion rupees.

Shell faces tough competition. Petronet LNG is putting up a 5.4 million tonne/year LNG terminal at Dahej in South Gujarat. BG International, an affiliate of BG Group, which also plans to build a 5 million tonne/year LNG terminal at Pipavav on the Saurashtra coast in Gujarat state.

More in LNG