The State government will sign an agreement with GDF SUEZ LNG of UK in New Delhi on April 17 to set up a floating storage re-gasification unit at a cost of Rs. 4,000 crore somewhere on the east coast near Kakinada as a joint venture of Gas Authority of India Limited and AP Gas Distribution Corporation Limited.

Re-gasified liquefied natural gas (RLNG) will be stored at this terminal for supply in future to gas-based power projects in the State which were operating now at only 50 per cent of their installed capacity for want of natural gas leading to power shortage in the state.

Chief Minister N. Kiran Kumar Reddy, Union Minister for Petroleum & Natural Gas S. Jaipal Reddy will be present.

The facility would be ready as a permanent asset of the State by 2013 and it would support 3,000 MW initially.