The government has reached a significant milestone in its journey towards developing a gas grid in the State. The A.P Gas Distribution Corporation Limited (APGDC), Gas Authority of India Limited (GAIL) and Shell and Engie Global LNG signed two joint venture agreements for the establishment of an LNG Floating Storage and Re-gasification Unit (FSRU) at Kakinada deepwater port in the presence of Chief Minister N. Chandrababu Naidu and GAIL CMD B.C. Tripathi here on Friday.
The first JV is between APGDC, Shell and Engie for the creation of a terminal company in which APGDC holds 48 per cent equity and its foreign partners 26 per cent each. It was signed by APGDC Managing Director S. Narayanan, Engie CEO Philip Olivier and Shell India Markets Private Limited General Manager Anindya Chowdhury.
The second one is between GAIL, Shell and Engie for the formation of an LNG supply and marketing company. GAIL holds 48 per cent equity in it, while the balance is equally shared by Shell and Engie. This was signed by Mr. Philip Olivier, GAIL Executive Director (Marketing) A.K. Manchanda and S.P. Singh of Shell India Markets Private Limited.
The construction part of the project is estimated to cost over Rs. 1,800 crore, and it is besides the cost of a permanent anchorage of FSRU.
Mr. Naidu said the LNG terminal was conceived almost five years ago. He requested GAIL and its partners to complete the project by the middle of 2017. As regards the gas grid, Mr. Naidu said tenders would be called for a pipeline proposed to be laid from Kakinada to Srikakulam next month and for another one between Kakinada and Nellore later in the year. Necessary clearances are being obtained from the Petroleum and Natural Gas Regulatory Board (PNGRB), he added.
Tenders for Kakinada - Srikakulam pipeline to be called in October
