Posted -
May 14, 2013
Last Updated at 20:46 IST - BS Reporter |
Hyderabad - Business Standard Ltd.
India
Floating gas terminal project, which is expected to be completed in
18 months from now, will have a capacity to handle 3.5 million tonnes of
liquified natural gas
GAIL (India) Limited is working with at least four states to develop
liquefied natural gas (LNG) storage infrastructure to be able to handle
import of 8 million tonnes of LNG starting 2017.
In Andhra Pradesh, GAIL and the state government had formed a 50:50
joint venture (JV) company, AP Gas Distribution Corporation Limited
(APGDC). The JV, in turn, had entered into a strategic tie up with
French company GDF Suez last year for establishing a floating storage
and regasification unit (FSRU) at Kakinada seaport besides a land-based
LNG terminal at a later date at the same location. GDF Suez will hold 26
per cent equity in the project.
Similar joint ventures have been formed with Kerala, Karnataka and
Rajasthan. “The idea is that we have to be in a ready state with LNG
terminals and pipelines etc when this LNG starts coming to India,” BC
Tripathi, chairman and managing director, GAIL, said yesterday night
after the signing of an MoU between APGDC and Kakinada Seaports Limited
for facilitating the project.
The LNG will cost $3-4 per million British thermal units (MBTU) less
than what it is on Tuesday on the east coast once the proposed LNG
storage infrastructure comes into existence, Tripathi said.
The floating gas terminal project, which is expected to be completed in
18 months from now, will have a capacity to handle 3.5 million tonnes
of liquefied natural gas, according to J Wason, chief executive officer
of GAIL.
While asking the company to expedite the project, chief minister N Kiran
Kumar Reddy said the state would be able to save at least Rs 4 per kwh
of power as compared with Rs 12 per unit paid for the power generated
through expensive fuels like RLNG and naphtha.
Post to be found at:
http://www.business-standard.com/article/companies/gail-to-work-with-states-to-develop-lng-infrastructure-113051400405_1.html
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