Shell, Kakinada Seaports make progress on LNG import terminal

Our Bureau Mumbai | Updated on May 06, 2013


With the submission of the draft environmental impact assessment report and the signing of the Port Services Agreement, Shell and Kakinada Seaports maintain they have achieved two important milestones towards implementing the Andhra LNG import terminal project.

The draft Environmental Impact Assessment (EIA) report for the proposed development of the Andhra LNG terminal at the Kakinada deepwater port was submitted to the State Pollution Control Board in Kakinada.

On April 11, Shell and Kakinada Seaports (KSPL) signed the port services agreement, setting out the commercial arrangements underlying the development and operation of the required port facilities for the entire duration of the project.

In a statement, Roger Bounds, Shell Vice-President Global LNG said, the Kakinada project would benefit from Shell’s presence in several existing and planned LNG supply projects, and would help ensure diversity and security of supply to Andhra Pradesh.

He added that Shell is looking forward to the imminent public hearing on the site following the submission of the draft EIA.

Yasmine Hilton, Chairman of Shell Companies in India added that India is an important market for LNG, and Gujarat and Andhra Pradesh are key markets for gas in India.

Following Shell’s Hazira terminal on the west coast in Gujarat, Shell is keen to set up an LNG receiving terminal on the East coast in AP. Hilton added that this would be the first floating and storage regasification unit in India with Shell's partners.

The project, which was conceived by Shell and its partners in 2011, is nearing fruition. The project will be the first LNG import terminal on the East Coast, and the terminal will start with a capacity of up to 5 million tonnes per annum, expandable to 10+ million tonnes per annum.

Shell has since established the project company by the name of Andhra LNG Pvt Ltd as the venture to develop, implement and operate the LNG import and regasification terminal.

The establishment of the LNG import and regasification terminal at the Kakinada Deepwater port in AP is the next significant Foreign Direct Investment for Shell in the country and Andhra Pradesh.


Published on May 06, 2013

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