Memorandum for a strategic energy project of US$ 9.6 Billions in India

Qatar Gulf News – Doha, Qatar. IL&FS (IEDCL) Energy Development Company and QCIP have signed a Memorandum for a strategic business cooperation in the field of LNG/NG supply, setting up the LNG storage & regasification facilities, marketing and distribution of regasified LNG/NG and setting up of Gas based Power generation facilities & trading of Electricity, as well as, related infrastructures projects. The total budget of the project in full development is close to US$ 9.6 billions.

IEDCL is the largest state energy-infrastructure company in India. The company promoted by Infrastructure Leasing & Financial Services Limited, to identify, develop, implement, operate and maintain both conventional (coal based, hydro, gas based, etc.) and non-conventional (wind, tidal, bagasse, bio-gas, geothermal, solar, etc.) power projects through study/surveys and investigations, preparation of feasibility reports, environmental and resettlement and rehabilitation reports or such other reports as may be required, entering into project agreements with various agencies, entering into EPC and O&M agreements, arranging equity and debts funds to finance the projects. QCIP is a company which is active in the industry of energy, specialized in marketing and trading LNG/Natural  Gas, consulting and supporting services, as well as intermediary services, in order to facilitate and achieve international investments and all kinds of related business transactions.

Photo today, during the Signing Ceremony, Doha Bank Headquarters in Qatar: (from the right to the left) Mr. Haziq Beg, Mr. C.K. Krishnan, Mr. Hari Sankaran, Dr. Theodore Theodoropoulos, Mr. Ameya, Mr. Abdulla, Mr. Leftheris Eleftheriou

”Each Party has various interests in the Field, in the region of India and Asia in general, so the Parties wish to examine together potential opportunities, exploit the synergies and to cooperate in order for both of them to join their forces and efforts and to collaborate and mutually achieve their business goals and interests in the field so as to enable them to develop their businesses more effectively and to take advantage of the opportunities arising in the Field throughout the Asia region”, said Dr. Theodore Theodoropoulos, Managing Director of QCIP.

”In Particular, the Parties have to cooperate initially for the development and operation of an Integrated SEZ & Maritime Complex at Nana Layja / Kutch, Gujarat (including LNG/NG supply, setting up LNG import terminal, LNG storage and regasification units, NG infrastructure, industrial & downstream facilities, marketing & distribution of regasified LNG/NG and setting up gas based power generation facilities & electricity trading) in two (2) phases”, said Mr. Hari Sankaran, Chairman of IL@FS Energy Group.

Phase one of 2,000 MW gas based power project supported by a 2.5 MTPA LNG terminal (including two LNG storage tanks each of operating capacity 160,000CM) and phase two scale up power generation capacity to 10,000 MW and ramp up LNG terminal capacity from 2.5 MTPA to 5 MTPA. The project also will consists of gas pipelines, national grid facility operations, balancing stations, pumped storage facilities, and other downstream facilities.
”The development of an Integrated SEZ & Maritime Complex at Nana Layja / Kutch, Gujarat (incl. Gas based power plant, LNG import terminal and/or FSRU, storage and regasification units, NG infrastructure, industrial & downstream facilities, LNG/NG supply, marketing & distribution and power/electricity trading) will allow India and Kutch, Gujarat to have reliable power and gas to the various industrial sectors across the region”, said Mr. C.K. Krishnan, Director of Wholesale Banking of DOHA BANK Group.

”The project will provide much needed reserve capacity to allow for India to redevelop and close its old and existing diesel and oil fired power plants at affordable power tariffs in a more efficient and clean process. It will also allow India processes, timeline to develop the project as well as the requirements for establishing a dedicated gas import network and support both by the government and the private sector”, said Mr. Haziq Beg, Chief Operating Officer of IL@FS Energy Group.
The project of total US$ 9.6 billions, shows many advantages including access to under construction 765KV high capacity transmission corridor (Green Corridor ) to connect with RE rich western region in Rajasthan, access to State/National Gas Grid, can serve the peaking requirement of Gujarat and other Western Region States of India and can supply power to any part of India.

Sources: QGN, Reuters, BBC, Gulf Times, Caye Global News, QAN, CNN.