Kogas, Fairwood Peninsula Energy to Cooperate in India's LNG Sector

Korea Gas Corporation (Kogas) and Fairwood Peninsula Energy (FPE) on Wednesday inked a MoU regarding cooperation in India’s LNG space.

The memorandum was signed by Jang Jin-suk, director of supply at Kogas and FPE CEO Frederick Jones in Seoul. US based FPE is a global company specializing in natural gas liquefaction projects.

The two companies would look to work with local Indian firms in the natural gas space and focus on the east Indian market. FPE will focus on FRSU, while Kogas will work on the pipeline business with local natural gas companies, the Korean state owned firm said in a statement. 

India is slated to become one of the biggest importers on LNG in coming years as domestic demand is expected to soar. With usage expected to rise, India’s oil ministry projects country’s LNG import terminal capacity will double in next six years. Demand for gas in India is expected to be driven by refineries, fertilizer and power plants.

According to a document released by the ministry on June 3, country’s LNG terminal capacity will likely rise to 47.5 million tonne per annum (mtpa) by 2022 from the current 21.3 mtpa as existing terminals expand capacity and new ones get commissioned.

Currently, there are four LNG terminals at Dahej and Hazira in Gujarat, Dabhol in Maharashtra and Kochi in the state of Kerala. Capacity expansion of Dahej LNG terminal is expected from 10 mtpa to 15 mtpa by end of 2016. Further, a firm plan is in place to augment another 2.5 mtpa capacity at Dahej, the oil ministry document stated.

Work to develop a new LNG terminal of 5 mtpa at Ennore in southern Indian state of Tamil Nadu is at an advanced stage. In addition, two new R-LNG terminals of 5 mtpa capacity each (at Dhamra and Kakinada on the east coast) are also planned to be developed.