Government of Karnataka partners with Singapore firm, LNG Alliance, for the development of Karnataka's first LNG import terminal

LNG Alliance, together with Government of Karnataka and NMPT, has proposed to undertake the conceptualization of commercial project structure for developing a major LNG import terminal in Karnataka, with an initial capacity of 4 Million Tonnes Per Annum (MTPA), and the potential for expansion up to 8 MTPA in line with the estimated demand increase over the next 20 years. In addition, this import and regasification terminal would also have the ISO LNG containerisation and LNG truck loading facility for serving the industrial and transportation sector. This could also be India’s first dedicated LNG bunkering facility that would provide LNG as fuel for ships visiting the NMPT port and bunkering shuttles to the West Coast of India.

If LNG Alliance is the successful bidder when the port invites open tenders for setting up of the terminal, LNG Alliance intends to invest approximately 290 million US dollars to develop, construct, and operate a Floating Storage and Regasification Unit (FSRU) over the next 3 years, and manage the LNG supply. “We see this as an important step to meet India’s cleaner energy goals of phasing down coal fired powerplants and transitioning to an emission free economy using LNG as a bridging fuel. LNG Alliance will develop a tolling fee based floating LNG import terminal, within the maritime concession area of the NMPT. This terminal will also be open for third party access and will provide the most competitive tolling rates in India, based on the LNG sourced from our supply partners.” said Dr. Muthu Chezhian, the Chief Executive Officer of LNG Alliance, Singapore.

NMPT, the gateway port for the State of Karnataka, is well connected with major interstate highways and railways, allowing for easy access for downstream distribution of LNG by virtual pipelines, which makes NMPT as the ideal location for the LNG import terminal in Karnataka. "The proposed project could not only boost New Mangalore Port’s vision of undertaking initiatives towards a green future, but bolster the country’s Natural Gas grid, thus contributing to the Honourable Prime Minister’s efforts in reducing the carbon footprint of the country. The project is subject to the fulfilment of procedures adopted at the port and approval of the competent authority”, said the Chairman, NMPT.

“As part of the Invest Karnataka Conclave, chaired by the Honourable Chief Minister of Karnataka, an MoU was signed between LNG Alliance and the State of Karnataka in June 2021, which formed the foundation of the current Cooperation Agreement signed between LNG Alliance and NMPT in December 2021. The proposed LNG terminal at NMPT will accelerate industrial growth, create job opportunities across the city gas distribution (CGD) networks, and will provide reliable energy security to Karnataka”, said Karnataka’s Commissioner of Industries, Ms. Gunjan Krishna.

India’s energy consumption has been estimated to grow by at least 35% from now to 2030, even with a delayed growth scenario due to the pandemic. As India builds out its gas infrastructure, natural gas will find multiple uses in India’s energy system, including help in meeting air quality and near-term emissions goals.  “The LNG Terminal at NMPT will bring many benefits to the households and industrial customers in Karnataka, most importantly affordable natural gas supply. Local industries will gain from the advantages of the new supply chains that are created through the establishment of satellite LNG/CNG fuel stations and LNG distribution thru virtual pipelines, to reach the hinterlands of Karnataka and the growing CGD networks.” said Ms. Cheryl Goh, the Executive Director of LNG Alliance, Singapore.

About NMPT: NMPT operates a world class port located in Mangalore, Karnataka, with the deepest inner harbour on the West coast of India. With a current level of handling 39 million tons of cargo, the NMPT port is equipped to handle all types of cargoes from big industries and companies. Mangalore Refinery and Petrochemicals Ltd (MRPL), Kudremukh Iron Ore Company Ltd (KIOCL), Hindustan Petroleum Corporation Limited (HPCL), Total Oil India Pvt Ltd and Udupi Power Corporation Limited (UPCL) are just some of the renowned companies utilizing NMPT.

About LNG Alliance: LNG Alliance is a Singapore company with experience in developing energy projects in the Gas and LNG sector and is a provider of end-to-end project development of LNG terminal solutions as a fully integrated turnkey solution provider from concept to project development, project execution, asset ownership, and operations for LNG infrastructure and LNG supply with ongoing projects in Mexico, Indonesia, USA and Caribbean.