Sri Vijaya Puram, July 20: The environmental clearance process for the Andaman and Nicobar Islands’ first Liquefied Natural Gas (LNG)-based power project has moved forward, with the Andaman and Nicobar Pollution Control Committee inviting comments from concerned persons on the Environmental Impact Assessment (EIA) and Environment Management Plan (EMP) reports prepared for the proposed LNG transportation infrastructure.
The proposed project is linked to the establishment of a 55 MW LNG-based power plant at Hope Town, Sri Vijaya Puram. Under the plan, Indian Oil Corporation Limited (IOCL) will supply regasified LNG to the power plant being implemented by NTPC Vidyut Vyapar Nigam Limited (NVVN), a wholly owned subsidiary of NTPC Limited.
The power plant had already received Environmental Clearance from the Ministry of Environment, Forest and Climate Change in September 2022. The project forms part of the Government of India’s initiative to strengthen reliable, cost-effective and environmentally sustainable electricity generation in the Andaman and Nicobar Islands, which currently depend largely on diesel-based power generation.
According to the project proposal, the plant was initially planned to operate on both diesel and LNG. The configuration was later revised to function entirely on LNG in line with the Centre’s policy of reducing diesel-based power generation in the islands.
The Ministries of Power and Petroleum and Natural Gas, with the concurrence of the Ministry of Home Affairs, subsequently designated IOCL as the implementing agency for developing the LNG supply infrastructure for the project.
Under the proposed arrangement, small LNG tankers will transport liquefied natural gas to the islands. The fuel will be transferred to a Floating Storage and Regasification Unit (FSRU), from where regasified LNG will be supplied to the power plant through a pipeline.
As the project falls under Category ‘A’ of the Environmental Impact Assessment Notification, 2006, relating to oil and gas transportation pipelines and associated LNG infrastructure, it requires appraisal by the Expert Appraisal Committee of the Union Ministry of Environment, Forest and Climate Change.
IOCL submitted its application through the PARIVESH portal to obtain the Terms of Reference for preparing the EIA and EMP reports. The Ministry subsequently granted the Terms of Reference, following which baseline environmental studies were conducted between March and May 2023.
IOCL engaged Indomer Coastal Hydraulics (P) Ltd, Chennai, to prepare and update the EIA and EMP reports using the earlier baseline environmental data along with recently collected supplementary information. The Coastal Regulation Zone mapping and report were also revised by the IRS, Anna University, Chennai.
The EIA report assesses the environmental baseline of the project area, examines potential impacts associated with the proposed development and outlines mitigation measures for both construction and operational phases. It also includes the Environment Management Plan detailing measures for environmental protection and sustainable project operations.
The proposed Floating Storage and Regasification Unit will be located offshore at Hope Town in Ferrargunj Tehsil of South Andaman district. According to the Andaman and Nicobar Administration, the LNG supply infrastructure with a proposed capacity of 0.07 MMTPA is essential for the project, which is intended to reduce dependence on diesel generator-based power generation. The Administration stated that shifting to LNG is expected to provide a lower-cost fuel option while reducing smog-producing pollutants by 60 to 90 per cent and greenhouse gas emissions by 30 to 40 per cent.
