NEW DELHI: French power firm GDF Suez SA will take 26 per cent capacity in the 3.5 million tonne a year floating LNG import facility being set up off the Andhra Pradesh coast.
Andhra Pradesh Gas Distribution Corp Ltd, a 50:50 joint venture of GAIL Gas Ltd and Andhra Pradesh Gas Infrastructure Corp Pvt Ltd, would have access to 74 per cent of the nation’s first floating liquefied natural gas (LNG) terminal, officials said here.
The 3.5 million tonne floating terminal in shallow waters of Bay of Bengal will be designed to berth LNG carrying vessels, regassify or transport chilled natural gas into gaseous state before moving it onshore for transmission to consumers.
The terminal, which will take almost half the time construction of a LNG receipt facility on land takes, will be completed by first half of 2014, they said.
GDF Suez, which yesterday signed project framework agreement with APGDC, would be free to lease out its capacity from its 26 per cent share.
“It can bring 0.91 million tonnes of LNG annually at the terminal for marketing to consumers directly. Alternatively, it can lease out this capacity to whosoever it wishes,” an official said.
GAIL Gas is a wholly-owned subsidiary of GAIL India Ltd. A feasibility study for the terminal has been initiated and would be completed by the end of 2012, following which a Final Investment Decision (FID) for the project would be taken.
A floating LNG terminal is a low-cost solution to imports as it can be set up quickly with much less capital investment as it does not involve purchase of assets such as land.
The import terminal planned off the Andhra coast would have a 3.5 million tonnes per annum capacity using a Floating Storage and Regasification Unit (FSRU).
GDF already holds a 10 per cent stake in Petronet LNG Ltd, the nation’s largest LNG importer. Petronet operates a 10 million tonne import facility at Dahej in Gujarat and is building another 5 million tonnes terminal at Kochi in Kerala.
A GAIL statement yesterday said APGDC has been mandated to establish an LNG importation facility in the coast of Andhra Pradesh so as to narrow the gap between demand and supply position.
FSRU is a faster and low cost solution for LNG importation. This is the first of its kind in India.