LNG Terminals in Gujarat Current Status and Future Prospects Yogi R. Mehta Oil & Gas Consultant India Oil, Gas and Pipelines June 2006

LNG Terminals in Gujarat PLL’s Dahej, first LNG terminal to come up in India. Long term gas supply commitment from Rasgas. Commissioned beginning PLL’s Dahej, first LNG terminal to come up in India. Long term gas supply commitment from Rasgas. Commissioned beginning Shell Hazira LNG terminal Commissioned in 2005 on the “Merchant” model. Shell Hazira LNG terminal Commissioned in 2005 on the “Merchant” model. Possible future terminals at Pipavav, Jamnagar, Maroli & Mundhra. Possible future terminals at Pipavav, Jamnagar, Maroli & Mundhra. Gujarat Govt. wants another LNG Terminal. Gujarat Govt. wants another LNG Terminal.

Gas demand in Gujarat Gujarat accounts for over 25% of gas consumed in India. Large demand/supply gap still exists. Gujarat accounts for over 25% of gas consumed in India. Large demand/supply gap still exists. Dahej terminal functioning like clockwork. Tanker arrives every fourth day and RLNG sent to GAIL. Dahej terminal functioning like clockwork. Tanker arrives every fourth day and RLNG sent to GAIL. Hazira caught in gas price upsurge. Limited number of tankers received, so far, due to price resistance. Hazira caught in gas price upsurge. Limited number of tankers received, so far, due to price resistance. Acceptance of new LNG price is now being realized by consumers. Acceptance of new LNG price is now being realized by consumers.

Advantages of Gujarat Gas pipelines in North & South Gujarat for the last three decades. Gas pipelines in North & South Gujarat for the last three decades. GSPL building the state gas grid, number of segments completed. Accessibility would be available to most parts of Gujarat GSPL building the state gas grid, number of segments completed. Accessibility would be available to most parts of Gujarat Well developed industrial culture, skilled manpower, harmonious labor relations Well developed industrial culture, skilled manpower, harmonious labor relations Helpful Government & bureaucracy Helpful Government & bureaucracy

Dahej Terminal Details

Petronet LNG : The LNG Chain UPSTREAM DOWNSTREAM Production Gas Reserves Separation Gas Treatment SUBSURFACE DEVELOPMENT SURFACE DEVELOPMENT Gas Transport LIQUEFACTION, STORAGE AND LOADING RECEPTION, STORAGE AND REGASIFICATION Ras Laffan Liquefied Natural Gas Company Gas Liquids storage For export or local use Liquefaction plant LNG storage Loading Unloading LNG storage Regasification plant Gas transmission TRANSMISSION AND DISTRIBUTION SHIPPING Petronet LNG Ltd. GAIL/IOC/ BPCL - Offtakers Owner / Operator Mitsui

Dahej Terminal SOIL FILLING 0.65 MILLION CUBIC METERS PILING FOR TANKS 1156 (Driven Length 42 Km) PILING FOR TERMINAL 1767 (Driven Length 26 Km) PILING FOR JETTY 436 (Driven Length 40 Km) CONCRETE 110,000 cubic meters LNG TANK STEEL 6170 MT STRUCTURAL STEEL 1870 MT PIPING 200 Km Inch-dia INSULATION 270 Km – m CABLING 800 Km NO. OF EQUIPMENT 517 NO. OF INSTRUMENTS 2558

FEATURES OF LNG TERMINAL

LNG REGASIFICATIOON

PLL LNG SHIPS for Dahej DISHA & RAAHI Ship Builder Daewoo Shipbuilding & Marine Engg. Co. Port of Registration Valleta, Malta Overall Length m Moulded Breadth 43.4 m Design Draught 11.5 m Overall cargo tank capacity 138,097 m 3 Gross Tonnage 94,058 Tons Displacement 100,149 Tons Deadweight 70,151 Tons Design Speed 19.6 knots with Sea Margin & 20.5 without Sea Margin Fuel Oil Consumption Tons per day Guaranteed BOG 0.15% per day

SHIPPING & PORT OPERATION A: Dahej Terminal 25 year time charter from Mitsui OSK Lines- K Line- NYK Line-SCI 2 tankers - 138,000 m 3 capacity each membrane type. First Disha delivered in January 2004 and second Raahi in December 2004 Duel Fuel arrangement, First option RLNG. Bunker oil when RLNG not permitted Port Operation services – 4 Tugs, 2 Mooring crafts, pilot boat from PSA Marine-Ocean Sparkle placed at Dahej RAAHI DISHA

LNG TANKS ON SHIPS – DISHA & RAAHI

State of the art Un-Loading arms with automatic emergency release system 16 inch dia. 3 nos. for LNG 1 Unloading arm for return gas FACILITIES : UNLOADING ARMS

SHIP AT BERTH

Hazira Terminal Details

Hazira Project - Snapshot 2 LNG storage tanks of 160,000 m3 each 2 LNG storage tanks of 160,000 m3 each Infrastructure laid out for a capacity of 5 mtpa though initial throughput capacity is for 2.4 mtpa Infrastructure laid out for a capacity of 5 mtpa though initial throughput capacity is for 2.4 mtpa One jetty for LNG unloading One jetty for LNG unloading 3 LNG unloading arms 3 LNG unloading arms 4 tug boats 4 tug boats LNG ship sizes – to m3 LNG ship sizes – to m3 (S.S. Gemmata berthed at Hazira Port) World class LNG terminal – capacity available for more than 2000 MW power generation

GROWING LNG TRADE : INDIAN PERSPECTIVE India’s location Advantage India’s location Advantage West coast close to Middle east West coast close to Middle east East coast – Australia, Indonesia, Malaysia potential LNG suppliers East coast – Australia, Indonesia, Malaysia potential LNG suppliers LNG growth driven by demand for gas. LNG growth driven by demand for gas.

Future Outlook LNG from Dahej has been well accepted in Gujarat & elsewhere. Hazira seen to be stabilizing now. LNG from Dahej has been well accepted in Gujarat & elsewhere. Hazira seen to be stabilizing now. Major gas consumers need to accept the reality of current LNG market. Major gas consumers need to accept the reality of current LNG market. Users of Naphtha, FO/LSHS could accept RLNG price right away. Users of Naphtha, FO/LSHS could accept RLNG price right away. Room for one more LNG terminal in Gujarat in the near to mid term. Room for one more LNG terminal in Gujarat in the near to mid term.

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