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Andhra Pradesh Gas Distribution Corporation (APGDC), GDF Suez, Shell and GAIL have announced that they have signed two separate MoUs for a floating LNG terminal in Kakinada Deep Water Seaport in Kakinada, Andhra Pradesh.
Both MoUs were signed in the presence of N Chandrababu Naidu, Andhra Pradesh Chief Minister of Andhra Pradesh, P Ashok Gajapathi Raju, Union Minister of Civil Aviation, Dharmendra Pradhan, Union Minister of State (Independent Charge) for Petroleum and Natural Gas and YS Chowdary, Union Minister of State for Science & Technology and Earth Sciences.
The first MoU is between APGDC, GDF SUEZ and Shell and supports the development of the terminal. APGDC, a joint venture company between the Government of AP and GAIL, GDF SUEZ and Shell will have 48 per cent, 26 per cent and 26 per cent equity in the project, respectively.
The second MOU is between GAIL, GDF SUEZ and Shell and covers both the sourcing of LNG and the marketing of the regassified LNG from the terminal. GAIL, GDF SUEZ and Shell will have 48 per cent, 26 per cent and 26 per cent equity in the project respectively.
The Kakinada LNG terminal will use a Floating Storage and Regassification 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.
Chandrababu Naidu said, “I am committed to the project and am sure that these domestic and international partners who have come together under this MOU will bring the best expertise, technology and speediness from all over the world to complete the project within 18 months.”
He described Kakinada LNG Terminal as a great opportunity in the development of a project that shall ensure continuous availability of natural gas. Building such partnerships is important to develop projects with advanced technological capabilities.
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