Paradip Port Trust and GAIL (India) Ltd have signed an MoU for setting up an LNG regasification terminal at Paradip Port in Odisha even as Minister of Shipping G.K. Vasan announced plans to construct an offshore breakwater at the port.
As part of the capacity augmentation programme of Paradip Port, the Ministry of Shipping proposes to construct an offshore breakwater to improve navigability of cape size vessels in the approach and entrance channels, simultaneously with the construction of the LNG terminal.
GAIL, which has been authorised to lay the Jagdishpur-Halida and Surat-Paradip LNG pipelines, aims to set up the floating storage and regasification unit at Paradip Port. GAIL has envisaged the project with a send-out capacity of 4 million tpa in phase-I with a storage capacity of 170,000 cubic metres.
The estimated cost of the FSRU project is Rs.3,108 crore out of which Paradip Port would invest Rs.650 crore in breakwater and dredging while GAIL would invest the balance Rs.2,458 crore.
Considering the long-term potential of the market along the east coast, it is likely that phase-II of the LNG terminal project will also have an additional capacity of 4 million tpa, which will take the overall terminal capacity to more than 8 million tpa.
Paradip Port is in the process of enhancing its capacity to 252 million tpa by taking up several capacity addition projects, strengthening rail-road connectivity, and mechanising and modernising the existing facilities. The port is equipped with 14 berths along with three single point mooring of Indian Oil Corporation Ltd and one RO jetty with a capacity of 106 million tonnes to handle diversified commodities, the highest amongst all major ports.