Norway’s Crown LNG to build 7.2 mt LNG terminal offshore Kakinada

Our Bureau Mumbai | Updated on June 12, 2021

Company plans to make a final investment decision by end-2022 and to place the terminal in service three years later

Norway’s Crown LNG Holding AS (Crown LNG) said it has initiated the development of an LNG terminal with an annual re-gasification capacity of 7.2 million tonnes a year located offshore Kakinada in Andhra Pradesh.

Crown LNG India AS, a subsidiary of Crown LNG Holding AS, has signed an agreement with East LNG to finance, build and lease the infrastructure for their offshore LNG receiving terminal at Kakinada. Crown has also been contracted for operations and management of the facility through a 25-year lease.

Crown LNG said it hopes to finalise the Kakinada project’s EPC contractor and key sub-contractors during the coming weeks, the company said in a statement.

The company is working towards a final investment decision (FID) by the end of 2022.

Crown LNG estimates that the LNG terminal will be operational approximately three years after making a final investment decision for the project, the statement said.

Weathering the monsoon

“We will build an LNG terminal that will be operational 365 days a year, including during the monsoon season, for 25 years following the completion of the terminal,” says Gunnar Knutsen, CEO of Crown LNG AS, the project services unit of Crown LNG.

Crown LNG intends to develop the LNG terminal as a gravity-based structure that sits on the seabed approximately 11 kilometres offshore Kakinada.

Not only will such a solution be able to withstand the harsh weather conditions the Indian monsoon season presents, it will also contribute towards decongesting busy ports and keeping hazardous substances away from populated areas.

“By choosing this approach, we enable a 365-day operating window without placing unnecessary environmental and safety burdens on the local community in and around Kakinada,” Knutsen added.

The lack of viable LNG facilities on the east coast has caused significant energy shortages for the eastern part of India, particularly for high-volume energy users such as fertiliser, petrochemicals and power plants that are located in and around Andhra Pradesh. Many facilities have even been sitting idle due to lack of natural gas supplies.

Jørn Husemoen, Chairman of Crown LNG Holding AS said that the pipeline infrastructure near the project site is mature and therefore easy to connect to.

Crown LNG specialises in developing LNG infrastructure for harsh weather conditions, for both LNG re-gasification and LNG liquefaction.

Published on June 12, 2021

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