AG&P signs import terminal MoU with Hindustan LNG

AG&P (Atlantic, Gulf and Pacific Company) signed a memorandum of understanding with Hindustan LNG to supply tolled gas to power stations in the East Godavari region of Andhra Pradesh, India. 

Under the agreement, AG&P will provide an integrated solution to deliver regasified LNG through a new LNG import terminal that AG&P will also design and build at the port in Andhra Pradesh, according to AG&P’s statement.

The company will be responsible for designing and building all the required facilities for the import terminal, including a floating storage and mooring system, regasification terminal, related utilities and the provision of tolled gas to power plants and other users.

C.R. Prasad, chairman of Hindustan LNG, the Hyderabad-based LNG import terminal development company, said that the LNG import terminal in Andhra Pradesh will “serve the growing energy demands of the east coast of India where existing gas-fired power projects urgently need a reliable supply of LNG.”

AG&P will also carry out any necessary conversion works and, upon commissioning, ongoing operations and maintenance activities, the statement reads.

According to Hindustan LNG’s website, India’s demand for LNG reached 256 mmscmd in 2016 and by 2030, this demand is expected to increase to 430 mmscmd.

The floating storage (FSU) and regasification project is scheduled for commissioning by mid-2018.