Gail Drops Plan to Build LNG Terminal in East Indian State of Odisha

Indian public sector company Gail has dropped plans to set up a floating LNG (FLNG) import terminal at Paradip in the eastern India state of Odisha, according to Press Trust of India.

According to Press Trust, the decision is driven by the fact that a similar project in partnership with Royal Dutch Shell and GDF Suez off Kakinada in Andhra Pradesh has come through.

In October, Gail announced intention to come up with an Expression of Interest (EoI) seeking strategic partner for its FSRU project at Paradip. The publication of the EoI was to happen on March 2.

"Since Gail is presently not pursuing the project further, this EoI for selection of strategic partner for FSRU project at Paradip Port, Odisha stands withdrawn," Gail said in a notice, according to Press Trust.

The Floating Storage Regasification Unit (FSRU) was to have an initial capacity of four million tonne per annum (mtpa) in first phase, reaching a peak capacity of 4.8 mtpa, with a storage capacity of 170,000 cubic metres.

The first phase of the project was to become operational by 2017. Gail had in October 2013 signed an MoU with the Paradip Port Trust for setting up of the LNG import terminal.

Paradip would have been the fourth LNG terminal on India east coast.