India's BPCL Revives Terminal Plan: Report

Indian state-owned Bharat Petroleum Corporation (BPCL) may revive its plan to build an LNG import terminal, newspaper Mint reported January 8 citing two sources.

The terminal may have an initial capacity of 1-3mn metric tons/year which may be expanded to 5mn mt/yr. “BPCL is currently deliberating its options for setting up the LNG terminal. It is exploring locations on both the east and west coasts,” the first source told the newspaper, adding BPCL may invest rupees 20bn (about $300mn) in the project. The terminal could be in Mangalore on the west coast, or in Kakinada, Krishnapatnam or Gangavaram on the east coast.

BPCL recently formed a wholly owned gas subsidiary Bharat Gas Resources in order to focus on natural gas as a separate business. The second source told Mint that the company might also look at booking capacity in other LNG terminals in the country. A company spokesperson, however, told the newspaper that it is not considering any such proposal.

BPCL is also a co-promoter of India’s biggest LNG importer Petronet LNG, along with Indian Oil, ONGC and Gail. It is also a co-promoter of four city gas distribution companies — Indraprastha Gas in Delhi with Gail; Sabarmati Gas in Gujarat with Gujarat State Petroleum; Maharashtra Natural Gas and Central Uttar Pradesh Gas with Gail.