Kakinada-based KGLNG to be first off-shore LNG Terminal.

The port city of Kakinada, which has been selected under Smart City project, is all set to become an LNG city soon. The city is going have more than one Liquefied Natural Gas (LNG) supply terminals.

The Krishna- Godavari Liquefied Natural Gas (KGLNG) Pvt Ltd., which will supply gas from its Kakinada base, has got all the necessary permissions and clearances to start its business operations as an off-shore mode terminal. It is going to be the first-of-its-kind off-shore LNG Terminal.

The KG LNG Pvt Ltd is a special purpose vehicle floated by a consortium of companies - VGS group of the US and Exmar of Belgium is to set up an off-shore LNG terminal with a capacity of 3.6 MMTPA in the first phase and a similar capacity in the second phase at the Kakinada deep water port. The AP Government has already cleared an LNG terminal at Kakinada with a capacity of 5 MMTPA with APGSD-Gail- Shell as the partners. But there is no information about the commencement of this project.

According to the Experts, Andhra Pradesh would require nearly 30 MMTPA of LNG in future for its power projects and other Industries.

To meet the demand, at least 5 LNG terminals are required. Already, one at Gangavaram, two projects at Kakinada and one at Krishnapatnam are going to be set up. The Government has given CRZ and environmental permissions and also the CFE (consent for establishment) for the project.

The KGLNG Pvt Ltd is going to take up the construction works from October and is planning to start operations within 12 months likely by October 2017.

“Now we are thinking about the commencement of construction works 20 km from the Kakinada deep water port. The first phase works would begin in October at an estimated cost of Rs. 800 crore. The production would begin from October 2017. Later, we will go for expansion to attain the full capacity of 7.2 MMTPA. That second phase works would be taken up at an estimated cost of `400 crore.” explained KGLNG Pvt Ltd director Dr Kamesam.

The KGLNG is going to get the LNG from Yemen, Egypt, Qatar, Algeria and other countries. The LNG would be treated in a floating re-gasification unit and would be supplied to the parties who would ink MoUs with the Company.

THE NEW INDIAN EXPRESS