ONGC-led consortium signs agreement with New Mangalore Port Trust for LNG terminal

 State-run Oil & Natural Gas Corp-led consortium has decided to set up a liquefied natural gas terminal at New Mangalore Port. 

The consortium will carry out a feasibility study for 2-3 million tonnes capacity terminal, which can be expanded to 5 million tonnes in future, ONGC BSE -1.45 % said in a statement. Other consortium partners in the venture are state-run Bharat Petroleum BSE -0.90 % and Mitsui of Japan. 

The consortium has already signed an agreement with New Mangalore Port Trust that will pave ways for carrying out the feasibility studies, it said. 

"The studies would throw up concrete action plans; an investment decision is expected by early 2014. The consortium is eyeing a timeline of 2018 for commissioning," it said. 

Mangalore is aptly located as a hub to import gas and supply it domestically, it said. "From the Demand side, Mangalore is a fast-growing industrial hub with presence of Mangalore Refinery BSE 0.29 % & Petrochemicals Ltd, petrochemical complex ONGC Mangalore Petrochemicals Ltd and Mangalore SEZ," it added. 

The coastal location of Mangalore also has a strategic advantage of readily available all-season operating port with favourable marine conditions and proximity to existing and upcoming global supply sources of LNG, it added.