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APSEZ inks long-term LNG regasification agreement with IOC at Dhamra Port

Adani Ports and Special Economic Zone (APSEZ), of the Adani Group, has signed a long-term agreement with Indian Oil Corporation (IOC) to provide liquefied natural gas (LNG) regasification services on a use or pay basis to the state-run refiner at its upcoming LNG import terminal at Dhamra in Odisha.

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

 We are pleased to partner with Indian Oil by signing this long-term agreement. 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 as well," said Mr Karan Adani, CEO, APSEZ.

The foundation stone of the project was laid in July 2017 and construction has commenced by Larsen & Toubro, which won the contract to set up the tankages for gas storage. The terminal 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 m3 capacity each. It will be the first-of-its-kind in India and the second LNG terminal on the east coast after IOCís Ennore terminal in Tamil Nadu. The Ennore terminal conceived way back inm 1996 was put on backburner by the IOC for almost a decade. The first phase is likely to be commissioned early next year.

The existing LNG terminals at Dahej and Cochin are both in the west coast.


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 grow the nascent but exciting LNG by truck market, said a release.


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