India: GAIL Plans LNG Project in Andhra Pradesh

The Chairman of Gas Authority of India Limited  Mr  B C Tripathi said that the GAIL shall take active steps to establish RLNG Terminal in the Krishna Godavari Basin. Mr Tripathi called on the Chief Minister Mr N Kiran Kumar Reddy at the secretariat on Friday.

Initially an FSRU terminal is planned and after its success, a land based terminal will be set up in the state through the Andhra Pradesh  Gas Distribution Corporation.  It may be recalled that the Chief Minister has requested the Union Minister for petroleum and Natural Gas Mr Jaipal Reddy to intervene to instruct the GAIL and Gail gas to initiate necessary measures to set up an RLNG Terminal in the state through Andhra Pradesh Gas Distribution Corporation (APGDC), wherein GAIL  Gas has 50% equity.  The same issue was also highlighted in the speech of the Hon’ble Chief Minister in the National Development Council meeting.

The RLNG terminal in the state is expected to ensure uninterrupted  supply of natural gas to the industries to meet the shortfall quantity. The state has got 974 kilometres coastline and as such a technically and suitable location can be identified to establish RLNG terminal.  The State has also got huge natural gas pipeline infrastructure. Ceramic and glass industries which have started their projects in the state are ready to consume RLNG. The PCPIR which is to be established along the Vizag-Kakinada corridor is expected to be one of the big consumers of the RLNG. The Government of Andhra Pradesh has been extending support to establish the LNG terminal by providing technical support, land and other clearances.

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LNG World News Staff, December 26, 2011; Image: GAIL