The Andhra Pradesh Government wants speedy execution of the proposed LNG terminal being set up here by a consortium of Reliance Power (Anil Ambani), Shell and Kakinada Seaports Ltd (KSPL), as the State is in the grip of a severe power crisis and there is no natural gas available for the power plants in the State.
According to sources here, Minister for Infrastructure and Investment, Ports, Airports and Natural Gas G. Srinivasa Rao held a review meeting at the office of the Andhra Pradesh Gas Distribution Corporation, Hyderabad, on Thursday on the status of the project.
Narayanan, Managing Director, and Srinivasulu, Executive Director, and other senior officials participated in the review meeting. The Minister instructed the officials to speed up the process of execution of the LNG terminal here. The terminal is expected to be operational by the middle of 2014.
In the first phase, a land-based terminal at a cost of Rs 1,000 crore will be established and it will later be converted into a floating terminal at a cost of Rs 5,000 crore.
On completion, the terminal will supply 12 mmscd of gas to the power plants and other gas-based industrial units in the region. The capacity of the LNG terminal will be 5 million tonnes a year. It will also supply gas to Reliance Power's 2,400-MW power project coming up at Samalkot near here.
The gas-based power projects set up in the Krishna-Godavari basin of Andhra Pradesh have got into trouble as Reliance (Mukesh Ambani) is unable to extract enough gas in accordance with projections from its D-6 block near here and supply it to them.