SP Ports Pvt Ltd and Hindustan Petroleum Corp (HPCL) would soon sign a 50:50 joint venture agreement for setting up a liquid natural gas (LNG) terminal at Chhara in Gujarat.
The state-run HPCL and the Shapoorji Pallonji group company would invest about Rs 5,000 crore on the terminal project, which is intended to import LNG.
Chhara falls under Junagadh district where SP Ports is already developing a greenfield, all weather, direct berthing port.
At this proposed port, the joint venture firm would set up the terminal, which will have a capacity of 5 million tonne per annum.
A detailed feasibility study is being carried out for establishing technical and commercial viability of the LNG import and regassification terminal project. The port is connected to a gas pipeline grid and evacuation of the fuel would not be an issue.
The terminal project may be completed in three and half years from the date of commencement of work, reports indicate.
HPCL, which owns a 6.5 million ton refinery at Mumbai and a 8.3 million ton unit at Vizag besides owning a quarter of 49,077 petrol pumps in the country, had missed on the LNG business in past but now wants to make up for it.