The Andhra Pradesh government has signed two MoUs with oil firms for setting up a floating LNG terminal in Kakinada Deep Water Port in the state.
The MoUs were signed yesterday during Chief Minister N Chandrababu Naidu's two-day visit to Delhi that concluded today.
"The first MOU was inked between APGDC, GDF SUEZ and Shell. It supports the development of the terminal. APGDC (a JV between AP Government & GAIL), GDF SUEZ and Shell will have 48 per cent, 26 per cent and 26 per cent equity respectively in the project," an official release said tonight.
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The second MOU - inked between GAIL, GDF SUEZ and Shell - covers sourcing of LNG and the marketing of re-gasified LNG from the terminal. GAIL, GDF SUEZ and Shell will have 48 per cent, 26 per cent and 26 per cent equity respectively in the project, it said.
"This MoU will bring the best expertise and technology from all over the world to complete the project within 18 months," the release quoted the Chief Minister as saying.
The project will ensure continuous availability of natural gas to Andhra Pradesh. It would provide revenue to the state to the tune of about Rs 1,700 crore and employment (direct & indirect) for around 2,000 people, it said.
Andhra Pradesh Gas Distribution Corporation (APGDC), GDF SUEZ, Shell and GAIL signed the MOUs in presence of Naidu, Union Minister of Civil Aviation P Ashok Gajapathi Raju, Union Minister of State for Petroleum and Natural Gas Dharmendra Pradhan and Union Minister of State for Science and Technology and Earth Sciences Y S Chowdary.
The Kakinada LNG terminal will use a state-of-the-art Floating Storage and Re-gasification Unit (FSRU) with a peak capacity of five million tonnes per annum (mtpa) with the provision to double the capacity, the release added.
