SPM Port and Hiranandani Group enters into an agreement to build LNG terminal

Kolkata Port Trust, rechristened as Syama Prasad Mookerjee Port, has entered into an agreement with Mumbai based Hiranandani Group to build a jetty based liquefied natural gas (LNG) terminal at east Midnapur for storage and re-gasification of LNG with a maximum capacity of 5 MMTPA.

The proposed project entails an investment of around Rs 3900 crore and has an economic value of about Rs 6000 crore. The terminal is expected to provide direct employment to about 250 people and, indirect employment to 750 people, a press statement issued by the port on Monday stated.

The project had already obtained environmental clearance and SMP has given its NOC on mutually agreed terms and conditions, the release added.

The project is coming up on 38 acres of land acquired from the Haldia Development Authority. However, the waterfront area comes under the jurisdiction of SMP, Kolkata.

Apart from the onshore LNG storage and regasification terminal, the project envisages the development of a 125 km long pipeline from Kukrahati to Itinda in Bangladesh and 225 km long pipeline from Kanaichatta to Shrirampur.

Additionally, some 20 liquid to compressed natural gas (LCNG) stations will also get commissioned in West Bengal under this project.

Once commissioned in July 2024, LNG can be used as bunker fuel for ships and barges in the Hooghly River. Also, it will cater to the requirements of West Bengal and nearby states.