State’s first LNG terminal inches closer to reality as MoU inked
Bengaluru: Karnataka will soon have its first and the country’s sixth liquified natural gas (LNG) terminal. This is part of the Centre’s larger plan to boost the alternative fuel market to achieve net zero carbon by 2070. An MoU has been signed between the state government and Singapore-based LNG Alliance company, in association with New Mangalore Port Trust (NMPT). The project, with an investment of Rs 2,250 crore, is likely to be launched in the next two years with “minimal” land acquisition and usage of NMPT premises where there’s a dedicated LNG terminal. The company is close to registering its India arm under the name Shakti LNG to manage operations in Karnataka. LNG Alliance said the potential for LNG use in the state is about 2 million tonnes per annum (MTPA), with further expansion likely to create a demand for a whopping 8 MTPA. The project, once completed, will supply LNG to a 300km radius around Mangaluru, with the company considering the option of ISO tankers supplying gas for industrial and transportation use in hinterlands of the state and also for shipping activity along the west coast as part of the Sagarmala initiative. “This will be India’s first dedicated LNG bunkering facility that will provide LNG as fuel for ships through small-scale bunkering shuttles to the west coast, ensuring coastal connectivity and aligned with the Sagarmala initiative,” said LNG Alliance. Karnataka, which is struggling to attract big investors because of the pandemic, is buoyant with the project becoming closer to reality. “LNG Alliance has decided to set up its state-of-the-art terminal after seeing our industry-friendly policy and investment ecosystem. The project will create employment opportunities and generate more than 200 direct jobs. The MoU with LNG Alliance is another major milestone for the state,” said industries commissioner Gunjan Krishna.