As demand for gas on India’s east coast soars, corporates are firming up plans to enable LNG import terminals on the east coast.
Recently, Royal Dutch Shell, Reliance Power and Kakinada Seaports announced that they have made steady progress at the LNG import and regasification terminal at the Kakinada Deepwater port in Andhra Pradesh.
Shell, Reliance Power and Kakinada Seaports hold 40:40:20 equity in the LNG terminal, and are to invest around $1 billion. Kakinada Seaports operates the Kakinada Deep Water Port in AP and was the first operational privatised port on the East Coast.
Similarly, other LNG ventures are being lined up. Even as LNG importer Petronet is looking to bring on stream its 5 million tonnes a year Kochi terminal on the west coast by the year-end, the company is also building an LNG import terminal in AP.
Petronet wants to build a 5-mt a year LNG land-based terminal at Gangavaram port, at an estimated cost of $845 million. Gas from the Gangavaram terminal, post-2016, will supply refineries, fertiliser plants and the transport industry.
Andhra Pradesh Gas Distribution, a joint venture of state-controlled GAIL and AP gas infrastructure, has also signed an agreement with French firm GDF Suez, to carry out a feasibility study for floating regasification unit in AP. If approved, the project could commence next year.
Oil refiner Indian Oil Corporation is also looking to build a terminal on the country’s eastern coast. IOC has conducted engineering evaluation and is looking to build a 5-mt a year LNG receiving terminal at Ennore.
In the case of the Kakinada Deepwater port in AP, De la Rey Venter, global head of LNG, Royal Dutch Shell, said in an earlier statement, “India is an important market for LNG and the States of Gujarat and AP have the highest demand for gas in India. After the success of Shell’s Hazira terminal in Gujarat, Shell is keen to set up an LNG receiving terminal in AP.”
J.P. Chalasani, CEO, Reliance Power, said: “Kakinada, with its proximity to our Samalkot power plant and several other gas consumers, is a natural choice for setting up a LNG terminal”.