PPT inks pact with GAIL for LNG terminal

Bhubaneswar: Port town Paradip will shortly get an Liquefied Natural Gas terminal. An MoU in this regard has been signed between Paradip Port Trust (PPT) and GAIL India today in the presence of Union Shipping minister GK Vasan.

As much as Rs 3,108 cr will be invested for the establishment of such terminal and it is likely to provide its first phase operation by 2017, sources said.

GAIL, a government of India undertaking, which expressed interest in setting up the terminal, had sent a team of officials to Paradip port recently to conduct a feasibility study on the project. The team had expressed satisfaction over the logistics and infrastructure available there.

A draft proposal in this regard was passed unanimously at port trust board meeting in July this year. The draft memorandum of understanding had been sent to the Union ministry of shipping for approval.

The company is already working on the Surat-Paradip pipeline project. The cost of the 1,550-km long pipeline network with a capacity of 60 million standard cubic meters per day is estimated at Rs 9,000 crore. It will link Mora (Gujarat) on the west with Paradip on the east via Maharashtra and Chhattisgarh.