For setting up an offshore LNG (liquefied natural gas) terminal at Paradip Port in Odisha coast, India's largest State-owned natural gas distributor GAIL (India) has entered into a memorandum of understanding with Paradip Port Trust (PPT) at a cost of Rs 3,108 crore.
The proposed 'Floating Storage Regasification Unit' will have an initial capacity of four million tonne per annum (mtpa), reaching a peak capacity of 4.8 mtpa, with a storage capacity of 1,70,000 cubic metres. The first phase of the project is expected to go on stream by 2017.
While PPT would invest Rs 650 crore on breakwater and dredging, GAIL would invest the residual Rs 2,458 crore. In the second phase, an additional four mtpa capacity will be added (peak capacity- 4.8 mtpa), raising the terminal's overall capacity to 8-10 mtpa.