AHMEDABAD: Setting the stage for building the fourth liquified natural gas (LNG) terminal in Gujarat , the ministry of environment, forest and climate change (MoEF) has accorded environmental and CRZ (coastal regulatory zone) clearance to HPCL Shapoorji Energy Private Ltd (HSEPL) for developing new LNG storage and re-gasification terminal at Chhara in Kodinar of Gir Somnath district.HSEPL, a joint venture between Hindustan Petroleum Corporation Ltd (HPCL) and Shapoorji Pallonji group's SP Ports Pvt Ltd (SPPPL), plans to set up 5 million tonnes per annum LNG terminal within the proposed area of Chhara port. The project cost is estimated to be Rs 5,408.82 crore."As per recommendations of the EAC (expert appraisal committee), the ministry hereby accords environmental clearance to the project 'development of LNG storage and re-gasification terminal' at village Chhara taluka Kodinar, district Gir Somnath, Gujarat by HPCL Shapoorji Energy Ltd," the ministry said in its recent notification.HSEPL's LNG terminal will have LNG ship unloading jetty, LNG storage, LNG transfer and vaporization as well as other utilities and infrastructure facilities."The terminal will be provided with latest state of art instruments and controls for safe handling of LNG and LNG terminal operation," the company said in its environment impact assessment (EIA) study. Petronet LNG already operates 15 MTPA terminal at Dahej and Shell Gas runs 5 MTPA terminal at Hazira. The third LNG terminal by GSPL LNG Ltd at Mundra in Kutch was inaugurated by the prime minister Narendra Modi in October last year.According to a recent research report by the rating agency Crisil, natural gas demand in India is expected to grow at compound annual growth rate of 3.5% between fiscals 2018 and 2023. The demand is estimated to be 191-193 million metric standard cubic meter per day (mmscmd) across the country."Given the sustained domestic gas deficit, LNG demand is expected to increase at CAGR of 4-4.3% to 24.4- 24.7 million tonnes per annum (MTPA) between fiscals 2018 and 2023. Over the period, installed re-gasification capacity is forecast to increase to 50 MTPA from 26.7 MTPA (considering operational terminals only)," the report added.

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