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There is immense potential for the establishment of a second LNG terminal (offshore) at Kakinada as the demand-supply gap is bound to increase in the future and there is no need for any misgiving on the viability of the project, according to MVSR Kamesam, the Director of the Krishna-Godavari LNG Terminal Private Limited.
The KG LNG Pvt Limited is a special purpose vehicle floated by a consortium of companies – VGS group of the US and Exmar of Belgium – to set up an offshore LNG terminal with a capacity of 3.6 MMTPA in the first phase and a similar capacity in the second at the Kakinada deep water port.
It may be noted that the AP Government has already cleared an LNG terminal at Kakinada with a capacity of 5 MMTPA with Shell as one of the partners.
Meeting demand“It is estimated by experts that Andhra Pradesh would require not less than 30 MMTPA of LNG in the coming years and to meet the demand at least five LNG terminals would be required – one at Gangavaram, two at Kakinada, one at Krishnapatnam and the last at the proposed GMR port.At present, work is in progress on the Gangavaram terminal with a capacity of 5 MMTPA and the AP Government has cleared a 5 MMTPA LNG terminal at Kakinada,” he said.
The combined capacity of the two LNG terminals at Kakinada would only be 8.6 MMTPA and therefore there should not be any problems on the viability of the project, he said.
Project reports
He said the company had prepared a detailed project report (DPR) and the environment impact assessment (EIA) report and submitted them to the AP Government, urging the latter to direct the East Godavari district collector to make arrangements for conducting a public hearing.
“In fact, we submitted the documents before the elections, but as the poll code came into effect, the process was delayed.
“We now urge the new AP Government to expedite the process and pave the way for the establishment of the terminal. We want to become partners in the building up of new Andhra Pradesh,” he added.
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