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The Andhra Pradesh Government has initiated efforts to make the State a gas-driven economy, with investments worth Rs 10,000 crore in the pipeline in the RLNG sector.
This involves setting up of an Rs 5,000-crore floating storage and re-gasification facility and another Rs 5,000 crore LNG terminal on the coast of Andhra Pradesh.
The floating storage is being set up by A.P. Gas Development Corporation and GAIL in partnership with GDF Suez LNG UK Ltd. Its initial capacity will be about 12 MMSCMD, which is expected to significantly improve natural gas supply to the State, said Mr Ganta Srinivasa Rao, Andhra Pradesh Minister for Infrastructure & Investments, Ports and Natural Gas.
The second project involves establishment of a LNG terminal at Gangavaram jointly by Petronet LNG Ltd and Gangavaram Port Ltd — the term sheet agreement for this was signed here on Wednesday.
Mr Srinivasa Rao said that there was an acute shortage in domestic gas production from KG basin despite efforts being made by companies such as Reliance, ONGC and other players. “Although ONGC and other companies have indicated huge availability of gas from the offshore basin, it is yet to be made available. Because of this, gas-based power plants in the State are now running at 50 per cent capacity,” he said.
In addition to this, 4,000 MW gas-based power projects are ready for commission, requiring 20 MMSCMD of natural gas.
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