Hiranandani, Hyundai in talks for LNG terminal

Last Updated: Tue, Feb 07, 2012 19:22 hrs

The Hiranandani Group is in talks with Korea-based Hyundai Engineering & Construction Co Ltd to build a liquefied natural gas (LNG) terminal at Dighi port in Maharashtra.

If the talks materialise, this would mark Hyundai’s foray into the LNG terminal construction space in India.

The city-based realty company will set up the eight million tonne terminal for captive use and to cater to consumers in the power and fertiliser sectors. “They (Hyundai) are the lowest bidder and we are negotiating with them,” said Darshan Hiranandani, director, Hindustan Electricity Generation Company (HEGC), a group company.

A management consultant would be appointed for the project shortly. The company plans to commission the project by 2017. Saying it was too early to give investment details about the project, Hiranandani said: “We are working on the project and it is a long way to go.”

The LNG terminal would be Maharashtra’s second after Dabhol. The real estate major will also make its LNG foray through privately held HEGC, which spearheads its power plans.

Of the eight mt, the group would keep 40 per cent for its 2,500-Mw project in Pune, Hiranandani had earlier told Business Standard. HEGC is on track to commission the Pune power project by December 2014. For the remaining, it is in talks with potential customers in the petroleum marketing, power and fertiliser sectors.

However, the company’s plan to set up an LNG terminal in West Bengal is still at a preliminary stage. “We have not decided anything on the Haldia project. It is in the middle of the ocean and quite challenging,” said Hiranandani. Analysts say the Haldia project is not attractive because of draft issues and a silted and cyclone-prone delta.

With another terminal in five years, India will have five LNG terminals of 126 million standard cubic meters of gas per day. At present, it has two operational LNG terminals in Gujarat, Petronet LNG at Dahej and Shell Hazira at Hazira, with a total capacity of 13.7 million tonnes per annum or 48 mscmd.

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