Petronet's Odisha Terminal: A ₹4,000 Crore Price Shock

State-run Petronet LNG Ltd. (PLL), India’s largest importer of liquefied natural gas, has announced a significant cost escalation for its upcoming terminal in Gopalpur, Odisha, with project estimates rising by over ₹4,000 crore.

The increase stems from a strategic shift in project design—from a previously planned Floating Storage and Regasification Unit (FSRU)-based facility to a more capital-intensive land-based terminal. The change was necessitated by the limited global availability of FSRUs, prompting PLL to pursue a more reliable, long-term infrastructure solution.

PLL’s Board has granted in-principle approval for the revised investment, which now includes the development of a 5 million tonnes per annum (MTPA) land-based LNG terminal, up from the originally approved 4 MTPA FSRU-based setup. The new plan will result in an incremental cost of ₹4,048.80 crore, inclusive of all applicable taxes and duties.

This development marks a strategic commitment by PLL to ensure long-term energy infrastructure resilience and supply security.

News by Rahul Yelligetti.