To set up a terminal for importing liquid gas or liquefied natural gas in ships government-run Hindustan Petroleum Corporation (HPCL) would partner with Mumbai-based infrastructure major Shapoorji Pallonji Group Total cost for the terminal is estimated at Rs 5,000 crore. HPCL and SP Ports Pvt Ltd, a unit of Shapoorji Pallonji Group, plan to set up the terminal at Chhara in Gujarat's Junagadh district through a 50:50 joint venture.    

HPCL Chairman Subir Roy Choudhury said the two companies would sign the joint venture agreement next week. SP Ports is already developing a greenfield, all-weather port in Junagadh district. HPCL and SP Ports are carrying out a detailed feasibility study for establishing technical and commercial viability of setting up the gas import and re-gasification facilities for handling five million tonne per annum of gas.    

The port is connected to a gas pipeline grid and evacuation of the fuel would not be an issue, Roy Choudhury said. We are targetting three and half years for completion of the project from zero date, he said.  HPCL, which owns a 6.5 million tonne refinery at Mumbai and a 8.3 million tonne unit at Vizag besides owning a quarter of 49,077 petrol pumps in the country. It had had missed out in the growing liquid gas business in the past, but now wants to make up for it.