Oil Consortium Abandons Plan for $770 Million LNG Terminal in India
Mining Weekly reported that an Indian consortium has abandoned a plan for a $770 million liquefied natural gas (LNG) terminal in Mangalore, India.
Mining Weekly reported that an Indian consortium has abandoned a plan for a $770 million liquefied natural gas (LNG) terminal in Mangalore, India.
As quoted in the market news:
Indian consortium has scrapped plans for a $770-million liquefied natural gas (LNG) terminal in the southern Indian port town of Mangalore, balking at the low capacity use of a similar existing terminal in close proximity.
The consortium, comprising oil marketer Bharat Petroleum Corporation Limited (BPCL), exploration and production major ONGC and Japan’s Mitsui, had lined up the investment to build an initial three-million-tonne-a-year LNG terminal at Mangalore, which would later have been expanded to a five-million-tonne-a-year terminal.
But the investment plan had been scrapped as a similar terminal in the port town of Kochi, just 365 km south of Mangalore, operated by Petronet LNG Limited (PLL), was reporting capacity use of under 2%.
According to an official with BPCL, the dismal uptake of a terminal just a few hundred kilometers to the south, the absence of distribution and logistics infrastructure and a general downturn in the global gas business environment, had made the Mangalore LNG terminal project unviable.
