Reliance Power, Shell plan LNG terminal

Reliance Power and Shell are discussing a plan to form a joint venture to set up first east-coast LNG terminal in India. According to industry sources, the proposed new terminal is expected to involve an investment of Rs 3,000 crore. Shell operates an LNG terminal on the west coast in Hazira, Gujarat, which it set up with an initial capacity of 2.5 million tonne per annum (mn tpa). The terminal is intended to supply gas to factories and power plants that are eyeing imp­orts as output from the D6 block has fallen sharply. Power projects with a total capacity of about 7,000 MW, including Reliance Power's Samalkot project, would be stranded due to gas scarcity, as local gas is scarce and importing LNG from existing facilities on the west coast is economically not viable.