Indian Oil Books 60% Capacity at Adani Terminal

India’s Adani Ports and Special Economic Zone, a unit of Adani Group, has signed an agreement with state-owned Indian Oil Corporation to provide regasification services at its upcoming Dhamra LNG terminal in the eastern state of Odisha.

Indian Oil has booked 3mn mt/yr (or 60%) of regasification capacity for 20 years, Adani Ports said April 15. Indian Oil plans to supply the gas to its refineries in Paradip in Odisha and Haldia in West Bengal. The proposed Dhamra LNG import terminal is designed for an initial capacity of 5mn mt/yr, expandable up to 10mn mt/yr.  Initially, it will have two full containment type tanks of 180,000 m³ capacity each.  

“We are pleased to partner with Indian Oil by signing this long-term agreement. India lacks adequate LNG import infrastructure at present and I am confident that this project will play a key enabling role for increasing gas consumption in that part of the country,” said Karan Adani, CEO, Adani Ports. The terminal is also expected to supply gas to neighbouring Bangladesh and Myanmar. “In fact, the terminal will play a strategic role in gas supply to Bangladesh and Myanmar as well,” said Adani.

The foundation stone of the project was laid in July 2017 and engineering firm Larson & Toubro has begun work on the storage tanks. The terminal is expected to be commissioned during H1 2021, Adani Port said.

It will have a jetty capable of handling a wide range of LNG supply vessels, including the largest Q-max fleet from Qatar.  The terminal will be capable of reloading LNG on to tankers for redelivery by sea and will also have truck loading gantries to help grow the nascent trucking market, Adani said.