The Indian unit of Royal Dutch/Shell will soon sign a gas transmission agreement with a state-run firm to transport gas from its five-million tonne liquefied natural gas (LNG) import terminal in India’s west coast, officials have said. “The deal would be for transmitting at least one million standard cubic metres of gas per day,” said D J Pandian, director of Gujarat State Petronet (GSPL), with which Shell will sign the deal. Shell India Private, the Indian unit of Royal Dutch/Shell, is building the LNG import terminal at Hazira in Gujarat. Shell is negotiating with GSPL, which is laying a gas transmission network of 2500km, for evacuating gas from its terminal to industrial clusters in Surat and Bharuch, officials said.
Pandian said the deal to be signed soon would generate revenues of about $9.5 million for GSPL. GSPL would transport gas from Shell’s terminal to bulk industrial users in Hazira and Bharuch, covering a distance of about 150km. GSPL will transfer the gas produced from Lakshmi gas field developed by Cairn Energy to a 655mw power plant operated by Gujarat Powergen Energy Company at Paguthane in south Gujarat.
