Petronet LNG working on Gangavaram's commercial structure.

Indian oil and gas company Petronet LNG recently said it is working on a commercial structure of its proposed Gangavaram terminal on the east coast of India and expected to commence construction in about six months.

'We are working on the commercial structure including the pipeline connectivity before constructing the plant,' Petronet LNG Finance Director R K Garg said on the plant that will come up near Visakhapatnam.

The commercial structure would require at least 40% of the 5 million tonne per annum (MTPA) capacity committed to the local market, or through tolling arrangement, he said.

The Infrastructure and Investment Department of the Government of Andhra Pradesh has accorded permission to Gangavaram Port to set up an LNG terminal in joint venture with Petronet. The project has already received related approvals including environment clearance.

The construction would also require assurance of pipeline connectivity to the regional market on the east coast, he pointed out.

The Gangavaram terminal, expected to cost Rs. 4,500 crores, would raise Petronet LNG import capacity to 25 MTPA.


BS