Bumi, Shapoorji Pallonji plan LNG facility in Mumbai
SP Armada Clean Energy Ventures, a joint venture between Malaysia's Bumi Armada and India's Shapoorji Pallonji Oil and Gas, has entered into a license agreement to set up, operate and maintain a floating storage and regasification unit (FSRU) in Mumbai harbour for a period of 30 years, Bumi said on May 19.
Under the license agreement, both SP Armada and Port of Mumbai will have 270 days to fulfill the required conditions and finalised the deal. The agreement was signed on May 18. Mumbai-based Shapoorji Pallonji Oil and Gas owns 51% in SP Armada while Manila-listed Bumi Armada holds the remaining 49%.
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SP Armada has to now secure financing, obtain applicable permits for the start of construction works, and sign the agreement with the FSRU owner. At the end of the license period, ownership of the infrastructure which includes the pipeline and jetty, except for the FSRU, shall be transferred to Port of Mumbai, Bumi said.
This will be the third LNG import terminal in the state of Maharashtra. Another Mumbai-based firm H-Energy last month received the FSRU Hoegh Giant at its Jaigrah terminal. This is India's first FSRU. State-run Gail operates a land-based terminal in the state.