LNG grows in India

A floating storage and regasification unit (FSRU) will be established at the Port of Mumbai. The terminal will be the sixth LNG terminal on the west coast of India.

“SP Armada Clean Energy Ventures Private Limited (SPACEVPL) has entered into a License Agreement with the Board of Trustees for the Port of Mumbai on 18 May 2021 to set-up, operate and maintain a FSRU in Mumbai harbour for a period of 30 years,” said Malaysia’s Bumi Armada Berhad.

SPACEVPL is 51% owned by Shapoorji Pallonji Oil and Gas Private Limited (SPOGPL) and 49% owned by Bumi Armada Netherlands B.V. (BANBV), a wholly-owned subsidiary of Bumi Armada Berhad.

The FSRU will be set up on a Design, Build, Finance, Operate and Transfer (DBFOT) basis through the public-private-partnership (PPP) route.

India invests in LNG

In 2019, India’s Ministry of Shipping issued guidelines for establishing FSRU’s at major ports.

In a circular on the guidelines, a Ministry official said: “The demand for LNG has been increasing and it is the stated policy of the Government of India to double the share of LNG in the energy mix of the economy. LNG imports are expected to be substantial since domestic supply of LNG is not able to meet the demand for which supporting infrastructure requires to be developed. FSRUs within port limits offer a low-risk, fast-track and flexible option compared to traditional on-shore LNG terminals.”

The Port of Mumbai is an autonomous body of the Government of India.