Shell Energy India secures approval to expand Hazira LNG terminal

The expansion will enhance the terminal’s regasification capacity. Credit: tomeqs/Shutterstock.com.

Shell Energy India has reportedly secured environmental clearance to expand its Hazira liquified natural gas (LNG) terminal in Gujarat, India, with an investment of approximately Rs216bn ($2.45bn). 

The expert appraisal committee of the Ministry of Environment, Forest and Climate Change granted the clearance during a meeting held on 2 September 2025. 

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The approval allows Shell Energy India, a subsidiary of Shell Gas and part of Royal Dutch Shell, to increase the terminal’s capacity from 6.28 million tonnes per annum (mtpa) to 26.2mtpa. 

The expansion is expected to enhance the terminal’s regasification capacity to 25mtpa and boost truck loading capacity from 280,000 tonnes per annum to 1.2mtpa. 

The project includes the construction of new LNG storage tanks, a jetty for conventional LNG carriers and a breakwater. 

It also includes capital dredging of 2.8 million cubic metres to deepen the channel. 

The Hazira LNG terminal, commissioned in 2005 with an initial capacity of 2.5mtpa, has undergone several enhancements to support the growing LNG market in India. 

Located on the west coast, around 25km from Surat and 250km from Mumbai, Hazira is India’s first all-weather, LNG-led multi-cargo port. 

It is strategically connected to the country’s major transport networks including the Delhi-Mumbai mainline rail route and National Highway 8. 

Shell Energy India had previously attempted to expand the terminal’s capacity to 10mtpa from 5mtpa but achieved only 6.28mtpa. 

The forest clearance requirement delayed further progress, while the clearance for capacity expansion expired in 2021. 

With state approval now in place, Shell Energy India can progress with the project. 

In May this year, Shell, in collaboration with Reliance Industries and the Oil and Natural Gas Corporation, completed India’s first offshore facilities decommissioning project. 

The project involved dismantling mid and south Tapti field facilities, including the removal of five wellhead platforms and related infield pipelines, along with the plugging and abandonment of 38 wells. 

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