In a great relief to the gas based power sector in AP, GDF Suez and Shell sign up for LNG Terminal in Kakinada

lng terminal in kakinadaIn a much-needed boost to the gas and power sector in Andhra Pradesh, global companies GDF Suez and Shell have signed two pacts with the state-floated Special Purpose Vehicle (SPV). AP Gas Distribution Company, for a floating LNG terminal in Kakinada Deep Water Port. It has a peak capacity of five million tonnes per annum (mtpa), including the provision to double the capacity. The project would not only fetch an additional revenue of 21,700 crore per annum to Andhra Pradesh  but also provide direct and indirect employment to over 2.000 people. Most importantly, it will feed the starving gas-based power plants in the state.

The project is very crucial for Andhra Pradesh. There are nine gas-based power plants in the state with a total installed capacity of 7,500 MW. But due to non-availability of gas, only 500 MW power is being generated as on date. The LNG terminal at Kakinada will cater to at least 50 per cent of the total gas requirement of the power plants,”AP energy secretary Ajay Jain said. Mr Jain added, “This will not only fetch additional revenue of 21,700 crore per year but also provides direct and indirect employment to over 2,000 people.” The energy requirement in Andhra Pradesh is expected to jump from 43,684 million units as on date to 82,392 million units in 2018-19, requiring a generation capacity of 13,436 MW as against 6,158 MW currently.

However, it will take 18 months for the LNG termi-nal to supply gas to the power stations. Chief Minister N. Chandrababu Naidu, in whose presence the MoUs were signed, directed the APGDC officials to ensure that operations start within 18 months. It may be mentioned that the government of Andhra Pradesh signed two MoUs with oil firms for a floating LNG terminal in Kakinada Deep Water Port in the state. The MoUs were signed during Mr Naidu’s two-day visit to Delhi. The first MOU was signed between APGDC, GDF SUEZ and Shell. It supports the development of the terminal. APGDC, GDF Suez and Shell will have 48 per cent, 26 per cent and 26 per cent equity respectively in the project. The second MOU was signed between GAIL. GDF Suez and Shell and covers sourcing of LNG and the marketing of the re-gas-sifted LNG from the termi-nal. GAIL, GDF Suez and Shell will have 48 per cent. 26 per cent and 26 per cent equity respectively in the project. “This MOU will bring the best expertise and technol. ogy from all over the world to complete the project within 18 months.” the Chief Minister said.

As reported in Deccan Chronicle

 

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