Crown LNG expanding gas market horizons across India thanks to deal with local trading player

Crown LNG, a provider of liquefaction and regasification terminal technologies for harsh weather locations, has joined forces with India Gas Exchange (IGX), India’s first automated national-level trading platform, to work on liquefied natural gas (LNG) sales to pipeline customers downstream from the firm’s planned LNG import terminal in Kakinada, India.

The execution of a non-binding memorandum of understanding (MoU) serves to point out how Crown and IGX plan to cooperate on LNG sales to pipeline customers. The MoU was signed by Swapan Kataria, CEO of Crown LNG, and Rajesh Kumar Mediratta, Managing Director & CEO of IGX, and witnessed by Shri Tangella Uday Srinivas, Member of Parliament from Kakinada.

Moreover, the non-binding MoU is said to provide a framework for LNG cargoes traveling through the firm’s regasification terminal to be listed, marketed, and sold on the IGX. The agreement will allow the Indian player to drive market awareness through workshops and industry engagement initiatives, encouraging wider participation in gas trading.

Crown LNG has confirmed plans to collaborate closely with IGX on LNG cargo arrivals and sales, ensuring a stable and efficient supply chain to unlock new opportunities in India’s energy sector and reinforce the role of natural gas as “a key driver of sustainable economic growth.” Both players will explore further areas of cooperation to boost India’s 15% gas-based economy target by 2030, as envisioned by Prime Minister Narendra Modi.

Kataria highlighted: “This collaboration will offer Crown a unique position to sell gas to a large base of producers, traders, and offtakers throughout India. We believe this agreement is the first of several that will address the lack of supply for the eastern coast of the fourth largest LNG importer in the world.

“Together with IGX and our growing network of trusted local partners, we are excited to strengthen India’s energy security and to help make natural gas more accessible to industries and micro-enterprises across India.”

As the Kakinada terminal has received an approved total import capacity of 7.2 mtpa, Crown expects to achieve the final investment decision for the project in 2026 and to deliver the first gas in 2029. The company’s Kakinada and Grangemouth LNG import terminal assets form the basis of its entry into the global LNG infrastructure network.

Located on the East coast of India, the Kakinada project is licensed to operate 365 days a year, with the imported gas from the planned terminal anticipated to reach demand centers via the east-west pipeline, helping to support the Indian government’s drive to more than double the share of natural gas in the country’s energy mix to 15% by 2030.

The firm delayed the final investment decision (FID) for its planned and fully owned floating LNG (FLNG) import terminal in Scotland after picking the UK-based IKM Engineering & Environmental Consultants as its design and engineering partner for the project.