The Shipping Ministry has issued guidelines for setting up Floating Storage Regasification Units (FSRU) for handling liquefied natural gas (LNG) cargo at major port trusts.
The land licence model will be followed under a single stage e-tendering for implementing FSRUs with private funds wherein the bid reserve price will be the water area charges set as per the land policy prevailing at a particular port. The entity quoting the highest premium above the reserve price to be paid to the port will win the contract, typically for 30 years.
The total licence rental for the licence-period is to be paid upfront, the Ministry said in a March 7 circular. The FSRU project will not be bound by any minimum guaranteed throughput (MGT) till five years after commercial operations date. Thereafter, 30 per cent of the project capacity will be prescribed as MGT.
