AP signs MoUs for Kakinada LNG Terminal
Hyderabad, Jan 16 (INN): The Government of Andhra Pradesh signed two MoUs with oil firms for a floating LNG terminal in Kakinada Deep Water Port in the state. The MoUs were signed during Chief Minister N. Chandrababu Naidu's two-day visit to Delhi.
The first MOU was inked between APGDC, GDF SUEZ and Shell. It supports the development of the terminal. APGDC (a JV company between the Government of AP and GAIL), GDF SUEZ and Shell will have 48%, 26% and 26% equity in the project respectively.
The second MOU was signed between GAIL, GDF SUEZ and Shell and covers sourcing of LNG and the marketing of the re-gassified LNG from the terminal. GAIL, GDF SUEZ and Shell will have 48%, 26% and 26% equity in the project respectively.
'This MOU will bring the best expertise and technology from all over the world to complete the project within 18 months,' the Chief Minister said. The development of this project will ensure continuous availability of natural gas to Andhra Pradesh.
The project would provide additional revenue, to the state to the tune of about Rs 1,700 crore and employment (direct and indirect) for about 2,000 people.
Andhra Pradesh Gas Distribution Corporation (APGDC), GDF SUEZ, Shell and GAIL signed the MOUs yesterday in New Delhi in presence of Chief Minister of AP, Union Minister of Civil Aviation P. Ashok Gajapathi Raju, Union Minister of State (Independent Charge) for Petroleum and Natural Gas Dharmendra Pradhan and Union Minister of State for Science & Technology and Earth Sciences Y. S. Chowdary.
The Kakinada LNG terminal will use a state-of-the-art Floating Storage and Regasification Unit (FSRU) with a peak capacity of 5 million tonnes per annum (mtpa) with the provision to double the capacity.
The proposed terminal will use high-end technology and will be one of the first of its kind in India. The Kakinada port was found suitable for a project of this nature owing to its availability of a natural break-water in the Hope Island ' a barrier that protects against the impact of high seas.
News Posted: 16 January, 2015
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