LNG Alliance plans to build large import terminal in India

Singapore-based LNG Alliance has revealed plans to build a large LNG import terminal in the southern Indian state of Karnataka for about $290 million.

LNG Alliance, together with government of Karnataka and New Mangalore Port Trust (NMPT), has proposed to develop a regasification facility in Karnataka with an initial capacity of 4 mtpa, and the potential for expansion up to 8 mtpa.

In addition, this import and regasification terminal would also include truck loading and ISO tank facility for serving the industrial and transportation sector, according to a statement by LNG Alliance on Wednesday.

This would also be India’s first dedicated LNG bunkering facility that would provide LNG as fuel for ships visiting the NMPT port and bunkering shuttles to the West Coast of India, the firm said.


Over the next three years, LNG Alliance said it intends to invest about $290 million to develop, construct, and operate a floating storage and regasification unit (FSRU), and manage the LNG supply.

“We see this as an important step to meet India’s cleaner energy goals of phasing down coal-fired power plants and transitioning to an emission-free economy using LNG as a bridging fuel,” Muthu Chezhian, CEO of LNG Alliance, said.

As part of this agreement, LNG Alliance would develop a tolling fee-based floating LNG import terminal, within the maritime concession area of the NMPT.

“This terminal will also be open for third party access and will provide the most competitive tolling rates in India, based on the LNG sourced from our supply partners,” Chezhian said.

Several LNG developments

LNG Alliance said last year it had opened a new office in India’s Chennai as part of its plans to invest in the country’s growing LNG sector.

The firm is also developing the Amigo LNG export project in Mexico which includes a 7 mtpa liquefaction facility.

Besides offices in Singapore and Houston, the firm operates in Mexico, India, Indonesia, and recently added Montenegro as well.

LNG Alliance is joining forces with Montenegro’s state-owned power firm EPCG to look into building an LNG import terminal and two gas-fired power plants in the country.

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