Global downstream gas and LNG logistics company Atlantic Gulf & Pacific (AG&P) has broken ground on its LNG import facility at Karaikal Port, Puducherry, in South India.
The Karaikal LNG import facility is expected to commence commercial operations by the fourth quarter of 2021, the company said in its statement on Thursday.
Owned and operated by AG&P, the Karaikal LNG import facility is being built on a 12-hectare site within the Karaikal Port, the only one with deep-water access on the East Coast of India south of Chennai, with all-weather capabilities and 24/7 operations.
Karaikal LNG, which will have an initial capacity of one million tonnes per annum (MTPA), will include a Floating Storage Unit (FSU) leased through a long-term charter agreement with ADNOC Logistics and Services (ADNOC L&S) from 2021.
Located 280km south of Chennai and in close proximity to Tamil Nadu’s manufacturing clusters, the new terminal will provide natural gas to power plants, industrial and commercial customers within a 300 km radius.
In addition, Karaikal LNG will serve the important city gas networks of AG&P and other city gas companies that bring CNG and LNG to vehicles and piped natural gas to households and other establishments.
Truck loading bays will enable the delivery of LNG to remote customers by AG&P’s own fleet of trucks.