GAIL Gas Limited, a wholly owned subsidiary of GAIL (India) Limited – a Navratna PSU, signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh for setting up of an LNG terminal/FSRU along the state’s expansive sea coast.
The MoU was signed in the presence of Hon’ble Chief Minister of Andhra Pradesh Shri N. Kiran Kumar Reddy and Ms. J. Geeta Reddy, Minister for Major Industries for A.P. by Shri J Wason, CEO, GAIL Gas Limited and Shri S. Bhattacharya, Principal Secretary (Investment and Infrastructure), A.P. at the Partnership Summit 2012 organised by the Government of A.P and CII.
The Floating Storage and Re-gasification Unit (FSRU)/ Liquefied Natural Gas (LNG) terminal of 3.5 to 5 MMTPA will be set up around Kakinada/Vishakapatnam and is likely to be the first such facility on the east coast of the country with an estimated investment of Rs 5,000 crores.
The proposed facility would supply R-LNG, a preferred feedstock for the power, industrial and other sectors to meet the growing needs of the state. The facility would engender the much needed fillip for the development of natural gas usage in the state and the required infrastructure for transmission and distribution.
This investment project will be executed by the joint venture of GAIL Gas and APGIC called Andhra Pradesh Gas Distribution Company Ltd. (APGDC) with the support of GAIL and is targeted for completion by the end of CY 2013. The company is in the process of finalizing an upstream partner for project execution and LNG supplies to the proposed terminal.
As per the MoU, the A.P. Government will facilitate GAIL Gas/APGDC to obtain necessary permissions, registrations, approvals, clearances, etc. from the concerned departments to set up the project.
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LNG World News Staff, January 13, 2012