Having begun operations earlier this year, India’s new LNG import terminal at Mundra is expected to boost utilisation from current 45% to 55% within four to six months. The terminal jointly owned by Gujarat State Petroleum Corp (GSPC) and Adani Group through GSPC LNG, the terminal in western Gujarat has annual capacity of 5 MT and its current throughput is around 2.2 MT per annum (mtpa).
The terminal in the western state of Gujarat is currently connected to Anjar in southern Kutch which is about 40 KMs away from Kandla port through a gas pipeline that has a diameter of 32 inches. Another pipeline connecting Anjar to Banaskantha district in Gujarat only has a diameter of 18-inches, which limits the terminal’s utilisation.
To increase offtake from the terminal, Gujarat State Petronet Limited (GSPL) plans to lay an additional 300 – 350 KM pipeline connecting Anjar to Banaskantha. Once regulatory approvals are granted, it will take about two years before the pipeline will be ready. In order to meet a rise in domestic gas demand, GSPL will set up a compressor at Anjar in Kutch, which will increase the terminal’s capacity utilisation to about 2.7 mtpa or 55%.
The use of the terminal had ramped up quickly due to a surge in domestic gas demand as low Asian LNG spot prices aided a switch to gas-based power. The Mundra terminal has imported 20 cargoes so far, through long-term and spot market, with an average of 2 to 3 cargoes per month, and expects this to continue until the compressor is set up.
