Final clearance process underway for first LNG-based power plant in Andaman Islands

Plans for the Andaman and Nicobar Islands' first LNG-based power plant advanced as authorities sought public comments on environmental reports. The 55 MW project aims to replace diesel-based generation, lower emissions, reduce fuel costs, and improve sustainable energy supply

Kolkata: Plans for the first gas-based power plant on the Andaman and Nicobar (A&N) Islands seem to be moving forward with the Andaman and Nicobar Pollution Control Committee seeking comments from “concerned persons” on the Environment Impact Assessment (EIA) and Environment Management Plans (EMP) reports on the transportation of Liquefied Natural Gas (LNG) to the site.

Under the project that was all but shelved, Indian Oil Corporation Limited (IOCL) proposes to supply regasified LNG to a 55 MW LNG-based power plant being implemented by NTPC Vidyut Vyapar Nigam Limited (NVVN), a wholly owned subsidiary of NTPC Limited, at Hope Town, Sri Vijaya Puram (formerly Port Blair).

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The power plant had already obtained Environmental Clearance (EC) from the Ministry of Environment, Forest and Climate Change (MoEF&CC) in September 2022. The A&N Islands currently rely heavily on diesel-based power generation to meet electricity demand. To ensure a reliable, cost-effective, and environmentally sustainable power supply to the islands, the Government of India initiated the development of an LNG-based power generation project at Hope Town.

The proposed project forms part of the government’s broader strategy to move towards cleaner energy sources and reduce dependence on conventional diesel-based power generation in island territories.

Initially, the plant was to be dual-fuel (diesel and LNG), and the overall responsibility was handed over to NVVN. Subsequently, the project configuration was revised to operate as a single-fuel LNG-based power plant in line with the Centre’s policy to de-dieselise power generation in the islands.

The Ministries of Power and Petroleum and Natural Gas, with concurrence from the Ministry of Home Affairs, subsequently designated IOCL as the implementing agency for the development of the LNG supply infrastructure for the power plant.

Small LNG tankers will carry gas to the island and transfer the load to a Floating Storage and Re-gassification Unit (FSRU). The gas from the FSRU will then be piped to the power plant. As the project falls under Category ‘A’ of the Schedule to EIA Notification, 2006 under Item 6(a) relating to oil and gas transportation pipelines and associated LNG infrastructure, it requires appraisal at the central level by the Expert Appraisal Committee (EAC) of the Union Ministry of Environment, Forest and Climate Change. IOCL submitted an application to the ministry through the PARIVESH portal to obtain Terms of Reference (ToR) for preparing the EIA/EMP reports for the proposed project.

The ministry has granted ToR for the project, and as part of the environmental appraisal process, baseline environmental studies were previously conducted for the project between March and May 2023.

IOCL has engaged Indomer Coastal Hydraulics (P) Ltd, Chennai, an ISO-certified and QCI-NABET-accredited environmental consultancy organisation, to prepare and update the EIA/EMP report based on the earlier available baseline environmental data and present it in a form suitable for regulatory requirements.

In addition, the CRZ mapping and report were revised by the IRS, Anna University, Chennai. The final report presents the details of the revision in EIA and EMP studies by using all the earlier baseline environmental data and recently collected supplementary data.

The EIA report presents the environmental baseline status of the study area, an assessment of potential environmental impacts associated with the proposed project, and the mitigation measures proposed to minimise adverse impacts during the construction and operational phases.

The report also includes the EMP, outlining the measures proposed for environmental protection and sustainable operation of the project. The proposed FSRU project will be floating in the sea in Hope Town at Ferrargunj Tehsil in South Andaman District, Andaman and Nicobar Islands.

The success of the project lies in the installation of a 0.07 MMTPA capacity gas (LNG) supply infrastructure (FSRU), which is mandatory.

According to the A&N Administration, this is justified to give the project a green light to reduce dependence on Diesel Generator sets in the A&N Islands. The shift to LNG will not only be a cheaper option but also release 60-90 per cent less smog-producing pollutants and 30- 40 per cent less greenhouse gases.