APGDC, GDF SUEZ, Shell and GAIL sign MOUs

Sarkaritel
By Sarkaritel January 16, 2015 15:00

APGDC, GDF SUEZ, Shell and GAIL sign MOUs


New Delhi, January 16, 2015 – Andhra Pradesh Gas Distribution Corporation (APGDC), GDF SUEZ, Shell and GAIL announced that they have signed two separate Memorandums of Understanding (MOUs) for a floating LNG terminal in Kakinada Deep Water Seaport in Kakinada, Andhra Pradesh. Both MOUs were signed in the presence of Nara Chandrababu Naidu, Chief Minister of Andhra Pradesh, P Ashok Gajapathi Raju, Union Minister of Civil Aviation, Dharmendra Pradhan, Union Minister of State (Independent Charge) for Petroleum and Natural Gas and Y. S. Chowdary, Union Minister of State for Science & Technology and Earth Sciences.

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 AP 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 state-of-the-art 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 proposed terminal will use high-end technology and will be one of the first of its kind in India. 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.

Sarkaritel
By Sarkaritel January 16, 2015 15:00