Shell Pours ₹21,600 Crore into Major LNG Terminal Expansion

Shell Energy India, a subsidiary of Shell Gas BV under Royal Dutch Shell, has received environmental clearance (EC) to expand its Hazira LNG terminal in Gujarat from 6.28 million tonnes per annum (MTPA) to 26.2 MTPA, with a projected investment of ₹21,600 crore.

The proposed expansion will increase regasification capacity to 25 MTPA and boost truck loading capacity from the current 0.28 MTPA to 1.2 MTPA. Key infrastructure developments include the construction of LNG storage tanks, a new jetty for handling conventional LNG carriers, a breakwater, and capital dredging of approximately 2.8 million cubic metres to deepen the channel.

The project was recommended by the Expert Appraisal Committee of the Ministry of Environment, Forest and Climate Change during its meeting on September 2. After facing earlier delays due to pending forest clearances, Shell has now secured state-level approvals, allowing the project to move forward.

Originally commissioned in 2005 with a capacity of 2.5 MTPA, the Hazira terminal has undergone phased expansions. The latest upgrade is expected to significantly enhance Shell’s ability to supply LNG to industrial users and support the growing LNG-as-transport-fuel market, particularly as a cleaner alternative to diesel for heavy-duty vehicles.

News by Rahul Yelligetti.