India: Dahej Liquefied Natural Gas Terminal Expansion Phase III

Nonsovereign Project | 47928-001 Status: Active


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Project Name Dahej Liquefied Natural Gas Terminal Expansion Phase III
Project Number 47928-001
Borrower/Company PETRONET LNG LTD
Country India
Approval Number 7396/3085
Type or Modality of Assistance
7396 Loan USD 125.00 million Committed
7396 Loan USD 150.00 million Approved
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Energy - Conventional energy generation

Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Shinya Kondo
Project Sponsor(s) Petronet LNG Limited (PLL)
Objectives and Scope The phase III expansion of the Dahej LNG terminal is intended to strengthen the development impact of the first two phases by helping India to move toward its target of greater natural gas use and by enhancing its energy security. The project development impact includes the diversification of the energy base in an environmentally sustainable manner. The project will help reduce the unmet energy demand in India.
Linkage to Country/Regional Strategy The project is consistent with ADB's Country Partnership Strategy for 2013-2017 specifically with regard to emphasis on environmental sustainability and infrastructure development, including expansion of energy access and catalyzing private sector investment.

Safeguard Categories

Environment B
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects

The project is classified category A for impacts on the environment and category C for both involuntary resettlement and indigenous peoples. While the impacts are not unprecedented since the project is an expansion of the existing LNG terminal and is not located in an environmentally sensitive area, they are diverse and the potential operational and safety risks due to the nature and scale of the project are considered significant. The environmental impact assessment showed that construction impacts can be mitigated by sound engineering practices. No significant adverse impacts on both marine and terrestrial flora and fauna are expected.

The environment and social impact assessment carried out confirmed that (i) there are no occupants, titled or non-titled, within the proposed site, (ii) no productive lands will be affected and no persons are expected to be physically or economically displaced due to the proposed expansion and (iii) there are no fishing activities along the route of the jetty, and consequently no disruption is expected to the fishing activities during construction or the operation of the jetty and terminal. The national labor laws and regulations and the international core labor standards will be followed, monitored and reported.

Dahej terminal has a well-established environment, health and safety (EHS) cell, has a documented Integrated Management System and has acquired certifications for ISO 9001, ISO 14001 and OSHAS 18001 standards. No significant environmental issues concerning ambient air and water quality, air emissions, domestic waste and effluents as well as noise pollution were observed. Occupational and community health, safety and security procedures are in place including the establishment of an Emergency Response and Disaster Management Plan.

Involuntary Resettlement Resettlement impacts and impacts on indigenous peoples are not envisaged. The proposed site is part of an established industrial region by the state Government of Gujarat. The site is not inhabited and the nearest village (Luwara village) is about 1.5 km away.
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation As part of the Environmental and Social Impact Assessment preparation, the borrower conducted a formal public hearing attended by about 200 participants from nearby villages, NGOs, industry representatives and government officials. The consultation was held on 19 June 2013 at the project site to solicit the views and suggestions of various stakeholders relevant to the proposed expansion. Notices were issued in newspapers 30 days in advance indicating the purpose, project title, date, time and venue of the consultation. There were no major environmental and social concerns raised during the consultation. The participants welcomed the expansion of the LNG terminal, and desired that the company continue their ongoing corporate social responsibility (CSR) initiatives in infrastructure, health and education. During implementation, the company commits to continue engagement with stakeholders and communities on a regular basis. To facilitate grievance redress, the company has established a permanent office on site to handle stakeholder queries and complaints.

Timetable for assistance design, processing and implementation

Concept Clearance 19 Aug 2013
Due Diligence
Credit Committee Meeting 21 Oct 2013
Approval 05 Dec 2013
PDS Creation Date 19 Nov 2013
Last PDS Update 29 Sep 2014

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Dahej Liquefied Natural Gas Terminal Expansion Phase III Environmental Impact Assessments Oct 2013
Dahej Liquefied Natural Gas Terminal Expansion Phase III Environment and Social Compliance Audit Reports Oct 2013
Dahej Liquefied Natural Gas Terminal Expansion Phase III: Environmental and Social Compliance Audit Report Environment and Social Compliance Audit Reports Aug 2013
Dahej Liquefied Natural Gas Terminal Expansion Phase III: Environmental Impact Assessment Environmental Impact Assessments Aug 2013

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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