Adani Ports signs deal with IOC to offer LNG regasification services

Gautam Adani-led Adani Ports and Special Economic Zone (APSEZ) has signed a long-term agreement with Indian Oil Corporation (IOC) to provide liquefied natural gas (LNG) regasification services at its upcoming LNG import terminal at Dhamra in Odisha.

According to the contract, IOC has booked 3 million tonne per annum (mtpa) regasification capacity spread over 20 years and IOC plans to supply this gas to its refineries in Paradip in Odisha and Haldia in West Bengal, the company said.

The long-term contract is on use or pay basis.

“We are pleased to partner with IOC. India lacks adequate LNG import infrastructure at present and I am confident that this project will play a key enabling role for increasing gas consumption in that part of the country. In fact, the terminal will play a strategic role in gas supply to Bangladesh and Myanmar,” the company’s press release quoted Chief Executive Officer Karan Adani as saying.

Larsen & Toubro is setting up tankages for gas storage at the terminal which is expected to be commissioned during the second half of 2021.

The proposed Dhamra LNG import terminal is designed for an initial capacity of 5 mtpa, expandable up to 10 mtpa. Initially, it will have two full containment type tanks of 180,000 mt capacity each. This terminal will be a first of its kind in India and the second LNG terminal on the east coast after IOC’s Ennore terminal at Tamil Nadu.

It will have a jetty capable of handling a wide range of LNG supply vessels, including the largest Q-max fleet from Qatar. The terminal will be capable of reloading LNG to service proximate markets via the marine route and will also have truck loading gantries to help the nascent but LNG by truck market.

Indian Oil Corporation