Government of Karnataka partners with Singapore firm, LNG Alliance, for the development of Karnataka’s first LNG import terminal

2022-01-12 13:18:28 Container Terminal News

LNG Alliance, together with Government of Karnataka and NMPT, has proposed to develop a major LNG import terminal in Karnataka, with an initial capacity of 4 Million Tonnes Per Annum (MTPA), and the potential for expansion up to 8 MTPA in line with the estimated demand increase over the next twenty years.

India’s first dedicated LNG bunkering facility

 In addition, this import and regasification terminal will also have the ISO LNG containerisation and LNG truck loading facility for serving the industrial and transportation sector. This will also be India’s first dedicated LNG bunkering facility that will be providing LNG as fuel for ships visiting the NMPT port and bunkering shuttles to the West Coast of India.

LNG Alliance is a fully integrated turnkey project developer of LNG terminals and is building a global integrated LNG and Hydrogen infrastructure portfolio under its investment and asset operations JV arm, Aslan Energy Capital, Singapore.

Over the next three years, LNG Alliance intends to invest approximately 290 Million US dollars to develop, construct, and operate a Floating Storage and Regasification Unit (FSRU), and manage the LNG supply.

This terminal to provide the most competitive tolling rates in India

 “We see this as an important step to meet India’s cleaner energy goals of phasing down coal fired powerplants and transitioning to an emission free economy using LNG as a bridging fuel. As part of this agreement, LNG Alliance will 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.” said Dr. Muthu Chezhian, the Chief Executive Officer of LNG Alliance, Singapore.

 “The proposed LNG terminal at NMPT will accelerate industrial growth, create job opportunities across the city gas distribution (CGD) networks, and will provide reliable energy security to Karnataka”, said Karnataka’s Commissioner of Industries, Ms. Gunjan Krishna.

Benefits of the LNG terminal at NMPT

 “The LNG Terminal at NMPT will bring many benefits to the households and industrial customers in Karnataka, most importantly affordable natural gas supply. Local industries will gain from the advantages of the new supply chains that are created through the establishment of satellite LNG/CNG fuel stations and LNG distribution thru virtual pipelines, to reach the hinterlands of Karnataka and the growing CGD networks.” said Ms. Cheryl Goh, the Executive Director of LNG Alliance, Singapore.

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