Royal Dutch Shell, on Monday, said it had inked a port services agreement with Kakinada Seaports Limited (KSPL) for setting up a five million tonne a year floating LNG import terminal at Kakinada in Andhra Pradesh.

The company also submitted a draft environmental impact assessment (EIA) report, which, along with the Port Services Agreement, was described by Shell in a statement issued here as two important milestones. The company had, in May last year, announced the setting up of a floating facility to import five million tonnes a year of LNG at Kakinada. GAIL (India) has roped in French utility GDF Suez, and signed a pact with the Andhra Pradesh Government for setting up a 3.5 million- tonne floating and storage re-gasification unit (FSRU) facility.

The statement said the draft EIA report was recently submitted to the State Pollution Control Board in Kakinada.

The terminal would start with a capacity of up to five million tonnes per annum, and was designed for easy expandability to 10 million tonnes , the statement said. Shell has established the project company, Andhra LNG Pvt. Ltd., as the venture to develop, implement and operate the LNG import and re-gasification terminal.