Hyundai Engineering & Construction Co. Ltd., a part of the Korea-based business conglomerate, is being considered by India's Hiranandani Group for developing a Liquefied Natural Gas (LNG) terminal in Maharashtra. If the company wins contract, it will enter the LNG terminal construction sector of the country for the first time. Hyundai is best known in the domestic for its range of passenger cars.
The 8 million tonne terminal, to be located at Dighi, will fulfil Hiranandani Group's demand for captive usage and serve customers based in the power and fertiliser industries. According to Darshan Hiranandani, Director, Hindustan Electricity Generation Company (HEGC), a group company, “They (Hyundai) are the lowest bidder and we are negotiating with them.”
Once set up, the Dighi terminal will be only the second LNG terminal in Maharashtra, with the first one located in Dabhol. The realty giant is relying upon the privately-held HEGC for its initial steps in the LNG sector as it has been handling the group's projects related to power plants. The Indian company will be assigning a management consultant for the project, which is due to be commissioned by 2017. Hiranandani commented “We are working on the project and it is a long way to go.” He added that details about the investment needed for the project have not been chalked out yet as it was in its early stages.
Hiranandani had earlier said that the company plans to retain 40 per cent of the 8 mt it extracts from the Dighi plant exclusively for its 2500 MW project based in Pune, Maharashtra. HEGC is currently working on the Pune power plant project, which is scheduled to be commissioned by the end of 2014. The remaining 60 per cent LNG from Dighi terminal will be given to the company's clients; it is already hosting meetings with prospective buyers working in petroleum marketing, power and fertiliser sectors.
The company is also working on establishing a LNG terminal in West Bengal, though the project it in nascent stages right now. As per Hiranandani, “We have not decided anything on the Haldia project. It is in the middle of the ocean and quite challenging.” According to analysts, draft concerns and the silted and cyclone-prone delta of Haldia will mar the project.
Once the Dighi terminal is working in 2017, the country will boast of a total of 5 LNG terminals, delivering 126 million cubic metres of gas on a daily basis. Currently, two such terminals operate in India, Petronet LNG at Dahej and Shell Hazira at Hazira, giving 13.7 million tonnes each year of 48 mscmd.
