Kolkata inks Kukrahati LNG Terminal deal

Kolkata: The Syama Prasad Mookerjee Port (

SMP

), Kolkata, signed an MoU with the Hirnandani Group of Companies on Monday for a jetty-based LNG Terminal along the River Hooghly at Kukrahati in East Midnapore. The storage and re-gasification terminal will have a capacity of 5 MMTPA.

SMP is considering this development as a part of the 2nd Maritime India Summit (MIS) that is going to be held virtually from March 2-4. Being organised by the Ministry of Ports, Shipping and Waterways, the Summit will be inaugurated by Prime Minister Narendra Modi.

“As a part of MIS-2021, the MoU was signed between Vinit Kumar, chairman, SMP, Kolkata and Darshan Hirnandani, CEO, Bengal Concession, a subsidiary of Hirnandani Group of Companies. The total project cost is about Rs 3,900 crore with an economic value of about Rs 6,000 crore. It is expected to provide about 250 direct jobs and another 750 indirect ones,” a senior SMP official said.

While environmental clearance had already been obtained for the project, SMP has granted the NOC with mutually agreed terms and conditions. The project is coming up on about 38 acres of land acquired from the Haldia Development Authority (

HDA

). However the waterfront area comes under the jurisdiction of SMP, Kolkata.

Apart from onshore LNG storage and re-gasification terminal the project also comprises a 125 km long pipeline from Kukrahati to Itinda in Bangladesh and a 225-km-long one from Kanaichatta to Shrirampur. Also 20 LCNG stations will be commissioned in West Bengal under this project, aiding in the availability of clean fuel to people. Once commissioned, in July 2024, LNG can be used as bunker fuel for ships and barges in the Hooghly River. It will also cater to the requirements of West Bengal and nearby states.

“While the land belongs to the company, SMP will be providing marine services and maintain the channel. We are also working on a smaller LNG project at Haldia. Hopefully, coal and other fossil fuel will be replaced by LNG, even in the industrial belt around Haldia in the future,” Kumar said.


Stay informed with the latest Business News on Times of India. Explore updates on International Business, gain insights with Financial Literacy tips, and make use of Financial Calculators. Don’t forget to check the list of Bank Holidays in 2025, including Bank Holidays in January.


Ready to Master Stock Valuation? ET’s Workshop is just around the corner!