Shell Hazira Gas Pvt Ltd, the wholly owned subsidiary of Shell India Pvt Ltd, which is setting up its Rs 3,000 crore (Rs 30 billion) mega LNG terminal project at Hazira on the outskirts of Surat city, is setting up a non-LNG multi-cargo port near the LNG terminal.
SHGPL officials said in Ahmedabad on Tuesday that this port, which will be in addition to the state-of-the-art port within the LNG terminal for handling liquefied gas, will be developed with an investment of Rs 1,000 crore (Rs 10 billion).
"Preliminary work has been initiated and we have made a budget allocation of Rs 1,000 crore. The project is expected to be completed in the next three years. We are also looking for partners from India and abroad to take part in this project," said Nitin Shukla, director & group chief executive officer of the company.
Shell Hazira is also conducting market and techno-commercial feasibility studies.
The port will be under a new company, Hazira Port Pvt Ltd. "This port will be managed by an absolutely separate entity, HPPL, so that the LNG terminal project is not disturbed," Shukla told Business Standard on Tuesday.
According to Shukla, HPPL may also rope in more than one partner for the project.
Marc den Hartog, director of Shell India Pvt Ltd, said: "We have decided that as the container terminal will be at the heart of this port and the main focus will be on the container terminal, companies highly experienced in handling such terminals in India and abroad will be given priority to join us.
"Talks to be initiated with giants in the segment like P&O and others but we have not decided on anything yet. We will choose the partner on the basis of the quality of proposal."
This will be Shell's second highest investment in a single project in India. The company has already earmarked Rs 3,000 crore for the LNG terminal for which Rs 1,500 crore (Rs 15 billion) has been invested by the company while the rest will be spent during the next one year.
"We will commence commissioning of the LNG terminal by June next year, while commercial operation of the terminal is expected to kick off during the last quarter of calendar 2004. The terminal as of now has a capacity of 2.5 million tonne of LNG per annum, which will be increased to 5 million tonne per annum.
"If the market response is as per our expectations, we will double the production capacity," added Hartog.