Karnataka's First LNG Import Terminal To Come Up At Mangalore, Singapore's LNG Alliance To Build 4.4 MTPA Facility At NMPT

New Mangalore Port Trust (NMPT), a major state port in Mangalore, Karnataka signed an agreement with Singapore based LNG Alliance Limited to develop a Liquefied Natural Gas (LNG) import terminal with an initial capacity of 4 4 million tonnes per annum (MTPA), with provision for LNG virtual pipelines and an LNG bunkering facility.

The proposed terminal, that will be set up at an investment of ₹2,250 crore, will have a potential for expansion up to 8 MTPA in line with the estimated demand increase over the next twenty years.

LNG Alliance is a fully integrated turnkey project developer of LNG terminals and is building a global integrated LNG and Hydrogen infrastructure portfolio under its investment and asset operations JV arm, Aslan Energy Capital, Singapore.

Over the next three years, LNG Alliance intends to invest approximately $290 Million (₹2,250 crores) to develop, construct, and operate a Floating Storage and Regasification Unit (FSRU), and manage the LNG supply.

LNG Alliance will develop a tolling fee based floating LNG import terminal, within the maritime concession area of the NMPT. This terminal will also be open for third party access on a toll model.

NMPT, the gateway port of Karnataka, is well connected with major interstate highways and railways, allowing for easy access for downstream distribution of LNG by virtual pipelines, which makes NMPT as the ideal location for the LNG import terminal in Karnataka.

The port handled 39.15 million tonnes during the financial year 2019-20. c. The major commodities imported through the Port are POL Crude for MRPL, Cement, coal, fertilizer, edible oil, liquid chemicals, containerized cargo etc

"The proposed LNG terminal at NMPT will accelerate industrial growth, create job opportunities across the city gas distribution (CGD) networks, and will provide reliable energy security to Karnataka", said Karnataka's Commissioner of Industries, Gunjan Krishna.

"We see this as an important step to meet India's cleaner energy goals of phasing down coal fired powerplants and transitioning to an emission free economy using LNG as a bridging fuel." said Dr. Muthu Chezhian, the Chief Executive Officer of LNG Alliance, Singapore.

The agreement is a follow up to the memorandum of understanding (MoU)was signed between LNG Alliance and the State of Karnataka during the Invest Karnataka conclave in June 2021.

State BJP president and Dakshina Kannada Member of Parliament Nalin Kumar Kateel thanked the state Chief Minister Basavaraj Bommai and Minister for Heavy and Medium Industries Murugesh Nirani for sanctioning the project to Mangaluru.