MUMBAI: Shell Energy India Pvt Ltd, a unit of Shell Gas B.V. which in turn is owned by Royal Dutch Shell plc, has won environmental clearance to expand the capacity of its Liquefied Natural Gas (LNG) terminal at Hazira Port in Gujarat from 6.28 million metric tonnes per annum (MMTPA) to 26.2 MMTPA with an investment of ₹21,600 crore.
The capacity expansion to 26.2 MMTPA comprises 25 MMTPA regasification and 1.2 MMTPA truck loading terminal, according to a document seen by ET Infra.
The expansion consists of constructing LNG storage tanks, enhancing regasification capacity, building new truck loading facilities and augmenting LNG receiving capacity by constructing a jetty and breakwater.
The new jetty will be designed to handle conventional LNG carriers, and the expansion will include capital dredging of 2.8 million cubic meters to deepen the channel.
The Expert Appraisal Committee attached to the Ministry of Environment, Forest and Climate Change recommended the expansion plan at a meeting on September 2, according to the document.
Shell Energy India previously secured environmental clearance for expanding the LNG terminal’s capacity to 10 MMTPA from 5 MMTPA but the energy giant could only raise capacity to 6.28 MMTPA by the time the clearance expired in 2021 due to lack of forest clearance.
The LNG terminal at Hazira currently has an LNG handling and regasification capacity of 6 MMTPA which will be expanded to 19 MMTPA while the truck loading facility will be expanded to 1.2 MMTPA from 0.28 MMTPA.
Shell Energy India recently obtained forest clearance from the Gujarat government, facilitating the expansion plan.
The 2.5 MMTPA Hazira LNG terminal was commissioned in 2005 and expanded to 5 MMTPA in 2013 and later to 6.28 MMTPA.
The new truck loading facilities at Hazira allows Shell to supply LNG not only to industrial customers but feeds into the network which is coming up for LNG as a transport fuel aimed at replacing diesel with LNG in heavy duty vehicles.
