State run GAIL is contemplating a liquefied natural gas floating storage and regasification unit in Eastern India which could entail an investment of about INR 3,000 crore.

A senior company official said that the company is also considering Dhamra in Orissa for the terminal and initial-level studies are on.

The official said that the terminal was initially planned in Haldia and Digha in West Bengal but they were delisted because of being low draft and cyclone prone area.

West Bengal, however, would get a fresh city gas distribution project for which GAIL will sign a joint venture agreement with Hindustan Petroleum and the Greater Calcutta Gas Supply Corporation on November 17.

GAIL earlier had planned INRR 7,600 crore pipeline from Jagdishpur to Haldia, but the project faced rough weather as a Reliance Industries promoted RGTIL was not able to set up the Kakinada-Haldia pipeline, on which the Jagdishpur-Haldia pipeline was dependent for KG-D6 gas.

In the proposed gas JV, GAIL and Hindustan Petroleum will hold 37% stake each, while Greater Calcutta Gas will hold 26% equity with veto power.

(Sourced from PTI)