India’s largest liquefied natural gas (LNG) importer has been granted a loan worth $150 million (£91.8m) to increase the capacity of its LNG terminal in the state of Gujarat.
The project will increase the supply of natural gas to 15 million metric tons per annum (mmtpa) from the current 10 mmtpa.
The expansion will help Petronet LNG meet the demand for compressed natural gas for transportation, piped gas to households and fuel for gas-powered plant. The majority of the LNG is destined for north and west India where the gas will be fed into the national grid as a cleaner fuel for electricity generation.
The project will also reduce carbon emissions by around 3.15 million tonnes every year, the Asian Development Bank (ADB) said, which is providing the loan.
Siddhartha Shah, Principal Investment Specialist at ADB’s Private Sector Operations Department said: “The expanded terminal will help India move toward its target of greater natural gas use, thereby enhancing its energy security and shifting to cleaner forms of energy.”
The project is expected to start commercial operation in 2017.