39921-014: IND: DAHEJ LNG TERMINAL EXPANSION PROJECT

Project Data Sheet (PDS): Details

Description

PLL owns and operates India's first liquefied natural gas (LNG) import and regasification terminal, which started commercial operations on 9 April 2004. In the first phase, the terminal had a capacity of 5 million metric tons per annum (MMTPA). PLL imports LNG mainly from Ras Laffan Liquefied Natural Gas Company Limited (II) (Rasgas) in Qatar. PLL regasifies the LNG and sells to GAIL (India) Ltd., Indian Oil Corporation Ltd. (IOC) and Bharat Petroleum Corporation Ltd. (BPCL). GAIL, IOC, and BPCL in turn sell the gas to industrial end users. PLL has recently completed its expansion plan which has increased its capacity to 10 MMTPA.

Objectives and Scope

The Dahej LNG terminal expansion will help meet growing energy demand in North and West India, enhance energy security by diversifying the energy base, contribute to economic development by providing additional, lower-cost, and environmentally sustainable alternate input to the oil, power, fertilizer, and transport sectors, promote the use of clean energy, and provide an example of good practice in public-private partnership in infrastructure development.

Project Rationale and Linkage to Country/Regional Strategy

The Project is in line with ADB's India country strategy and energy sector strategy, which promote creating clean energy infrastructure for sustainable economic growth involving private sector.

Implementation Progress

Status of Development Objectives

Since the first phase commercial operations started in April 2004, Petronet has already fulfilled all the main development objectives envisaged, i.e. provide additional, lower-cost, and environmentally sustainable alternate input to major industries, diversify the energy base, promote the use of clean energy, and form a good practice in PPP.

Status of Operation / Construction

Construction of the expansion facilities was completed in March 2009 and full commissioning started soon after.

Material Changes

In May 2007, the structure of the ADB loan was revised from limited recourse financing for the Dahej expansion project to a corporate loan. This was due to the rapid expansion of PLL operations after ADB approval in August 2006, which included construction of the new LNG terminal at Kochi. This terminal was completed in December 2012.

Safeguard Categories

Environment: B
Involuntary Resettlement: C
Indigenous Peoples: C

Summary of Environmental and Social Aspects

Environmental Aspect

During operation, the only cumulative environmental impacts of the Project will be increased gaseous emissions from the additional gas turbine generators and vaporizers. Nitrogen oxides, the major air pollutant, will be controlled through the use of lean-burn technology in the gas turbine generators and the high stacks for rapid dispersion of emission. The major risks for LNG terminal operations are pool-fire and vapor dispersion in case of LNG spills or leakage from the storage tanks, pipelines, and process equipment. PLL will comply with the well-established industry standards for design, construction, and operations of LNG terminal facilities, as well as emergency response and disaster management plan and procedures, which have been adopted since the first phase of the terminal.

Stakeholder Communication, Participation and Consultation

Public consultation was carried out before the implementation of the first phase terminal also covering the proposed expansion to 10 MMTPA. Announcements were made in the local newspapers and on the website of the Ministry of Environment and Forests for pubilc comments. No objections were raised in these processes.

Project Sponsor

Petronet LNG Limited

 

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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