Kolkata Port Trust seeks Expression of Interest for floating LNG terminal

KOLKATA: The Kolkata Port Trust (KoPT) has invited Expression of Interest for setting up of non-jetty based Floating Storage and Regasification Unit (FSRU) or terminal for LNG, after it was alleged that the port was offering the right on nomination basis to a private entity.
The KoPT on September 18 had sought EoI till October 24 for the LNG facility from interested parties meant for common use and a pre-proposal meeting had also been firmed up on October 13, KoPT officials said.

Haldia Docks Officers' Forum general secretary Ramakant Burman has claimed that it was an attempt by KoPT to allow H-Energy of Hiranandani Group to setup the facility without any tendering or auctioning process.

"I had written letters to the shipping ministry, Central Vigilance Commission and even Cabinet secretary about violation of CVC guidelines and MPT Act," he told PTI.

"Chairman, Kolkata Port Trust has given water and land rights to H-Energy of Hiranandani Group of Mumbai for setting up of (FSRU) in the Bay of Bengal absolutely on nomination basis against the existing CVC guidelines in the matter," Burman has claimed in his letter.

The EoI floated by the port did not mention whether the contract would be given through tendering or through auctioning.

KoPT chairman did not respond to repeated calls. H Energy could not be reached for comments on the issue.

According to reports in a section of the media, H-Energy East Coast Private Ltd (HEECPL) had sought clearance for an LNG terminal in Digha that will also supply gas to domestic market through a 2050 km long pipeline from Haldia port in West Bengal to Jagdishpur in UP and to Bangladesh.

A resolution background that was placed before the KoPT in November 2013 stated that HEECPL had undertaken studies in 2012-13 with permission of KoPT, and, on basis of it, selected a location for setting up a 4 MMTPA LNG floating storage and regasification unit connected with a sub-sea pipline to a landfall point at Petua in East Midnapore district.

HEECPL had also sent a proposal for signing of an MoU with KoPT in March 2013, the background note said.

It said, on examination it was found that the project did not envisage grant of any exclusive right of port facility and would require to give permission for anchorage of the terminal and laying sub-sea pipeline on payment of TAMP notified charges and subsequently in principal approval was given to HEECPL in September 2013.