India’s East Coast to Get First LNG Terminal

India’s Andhra Pradesh Gas Distribution Corporation (APGDC), GDF SUEZ, Shell and GAIL have signed two separate Memorandums of Understanding (MOUs) for a floating LNG terminal in Kakinada Deep Water Seaport in Kakinada, Andhra Pradesh.

The first MOU is between APGDC, GDF SUEZ and Shell and supports the development of the terminal. APGDC (a JV company between the Government of Andra Pradesh and GAIL), GDF SUEZ and Shell will have 48%, 26% and 26% equity in the project respectively.

The second MOU is between GAIL, GDF SUEZ and Shell and covers both the sourcing of LNG and the marketing of the regasified LNG from the terminal. GAIL, GDF SUEZ and Shell will have 48%, 26% and 26% equity in the project respectively.

The Kakinada LNG terminal will use a Floating Storage and Regasification Unit (FSRU) with a peak capacity of 5 million tonnes per annum (mtpa) with the provision to double the capacity. The Kakinada port was found suitable for a project of this nature owing to its availability of a natural break-water in the Hope Island – a barrier that protects against the impact of high seas.

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