Shell India Pvt Ltd, is planning to set up a non-LNG multi-cargo port near its upcoming Rs.3,000 crore LNG terminal at Hazira.

The terminal would be developed at a cost of Rs.1,000 crore, and would have a gestation period of three years. The company is reportedly seeking Indian and foreign partners to participate in the project.

Shell Hazira is also conducting market and techno-commercial feasibility studies. A new company, Hazira Port Pvt Ltd, would be formed to promote the terminal.

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 has been invested by the company while the rest will be spent during the next one year.

The commissioning of the LNG terminal would commence by June 2004, while commercial operation of the terminal is expected to start during the last quarter of 2004. The terminal as of now has a capacity of 2.5 million tpa of LNG, which will be increased to 5 million tonne per annum, depending on capacity utilization.