Syama Prasad Mookerjee Port Signs Agreement with East Horizon for ₹260 Crore LNG FSRU Project at Haldia

Efforts to expand India’s natural gas infrastructure continue with a new agreement signed at the Haldia Dock Complex. 

The project involves the development of a Floating Storage and Regasification Unit (FSRU), which will enable the import and processing of liquefied natural gas. 

The initiative is expected to support energy supply chains in eastern India while contributing to the wider transition towards cleaner fuel sources.

Agreement Signed for LNG Infrastructure Project

Syama Prasad Mookerjee Port (SMPK) has entered into a licence agreement with East Horizon Pvt Ltd to develop a Floating Storage and Regasification Unit at the Haldia Dock Complex.

The agreement, signed recently, involves an estimated investment of ₹260 crore. The project is intended to expand the port’s ability to manage liquefied natural gas imports and strengthen regional energy infrastructure.

Understanding the Role of an FSRU

A Floating Storage and Regasification Unit (FSRU) is a specialised offshore facility designed to receive Liquefied Natural Gas (LNG) delivered by carriers.

The vessel performs several key functions:

• Storage of LNG in its liquid form
• Conversion of LNG back into natural gas through regasification
• Delivery of gas into onshore pipeline networks for distribution

This system allows ports and energy networks to handle natural gas imports without the need for large onshore regasification terminals.

Strengthening LNG Handling at Haldia Dock Complex

The proposed facility will be located at the Haldia Dock Complex, part of the operations managed by Syama Prasad Mookerjee Port.

Once operational, the FSRU is expected to enable:

• Import and storage of liquefied natural gas
• Regasification for supply into pipeline networks
• Improved LNG handling capabilities at the port

While the port authority has not disclosed detailed technical specifications or capacity figures, the project represents an expansion of LNG-related infrastructure in eastern India.

Supporting India’s Energy Transition

The project aligns with the Indian government’s objective of increasing the share of natural gas in the country’s overall energy mix.

Natural gas is often considered a comparatively cleaner fossil fuel when compared with traditional energy sources such as coal or oil. Expanding LNG import and processing facilities can support industrial energy requirements while contributing to reduced emissions intensity.

The development is also expected to strengthen the national gas supply network and support industries located in eastern and northeastern regions.

Potential Impact on Regional Development

Officials from the port authority indicated that the FSRU project may assist in improving energy availability for industries in eastern India. Greater LNG infrastructure could support sectors that rely on consistent energy supply, including manufacturing, chemicals and power generation.

The project also highlights the growing role of ports in facilitating energy logistics and infrastructure development.

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Conclusion

The agreement between Syama Prasad Mookerjee Port and East Horizon to establish an LNG FSRU at Haldia represents another step in expanding India’s natural gas infrastructure. 

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