India’s Petronet LNG is moving forward with its plans to install a floating storage and regasification unit (FSRU) in Gopalpur, Odisha.
The LNG importer said in a statement on Wednesday it has executed binding deals with Gopalpur Ports for its first LNG terminal on India’s east coast.
Petronet and Gopalpur Ports signed sub-concession agreement, sub-lease deed, and port service agreement for the first phase of the 4 mpta FSRU-based terminal, with provision for converting to a 5 mtpa land-based terminal at the port.
India’s largest LNG importer said the terminal would bring “augmentation in overall regasification capacity in the country thereby contributing towards gas-based economy.”
Petronet did not provide any additional information.
According to Petronet, the first phase of the project would cost about 23.06 billion rupees ($278 million).
Also, these costs include the construction of the jetty and the pipeline but not the FSRU charter.
The firm previously said that it expects to complete the Gopalpur project in three years.
Petronet is currently expanding its 17.5 mtpa Dahej LNG terminal with about 5 mtpa of new capacity and it expects to complete this expansion in 2025.
The terminal was operating at almost 100 percent capacity in October, according to Petronet.
The company also operates the 5 mtpa Kochi LNG terminal, but this facility currently operates at about 20 percent capacity due to lack of pipeline connection.