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Kakinada FLNG terminal MoUs signed

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Andhra Pradesh Gas Distribution Corp. (APGDC), GDF SUEZ, Shell and GAIL have signed two separate Memorandums of Understanding (MoUs) for a floating LNG (FLNG) terminal in Kakinada Deep Water Seaport in Kakinada, Andhra Pradesh.

The first MoU is between APGDC, GDF SUEZ and Shell and supports the development of the FLNG terminal. APGDC (a joint venture company between the government of Andhra Pradesh and GAIL), GDF SUEZ and Shell will have 48%, 26% and 26% equity in the project, respectively.

The second MoU covers both the sourcing of LNG and the marketing of the regasified LNG from the FLNG terminal. This MoU is between GAIL, GDF SUEZ and Shell, who will have 48%, 26% and 26% equity in the project, respectively.

FLNG terminal

The Kakinada LNG terminal will use a state-of-the-art floating storage and regasification unit (FSRU) with a peak capacity of 5 million tpy. It has provision to double the capacity.

Hon’ble Chief Minister of Andhra Pradesh, Shri N Chandrababu Naidu, who was said: “I am fully committed to the project and am sure that these domestic and international partners who have come together under this MOU will bring the best expertise, technology and speediness from all over the world to complete the project within 18 months.”

B. C. Tripathi, Chairman and Managing Director, GAIL (India) Ltd, said: “This is [a] first of its kind LNG terminal in India and would prove to be an important infrastructure for import of LNG on the eastern coast. Natural Gas is emerging as a significant fuel for economic development of the country and this FSRU based LNG terminal will surely play a far reaching role in making natural gas available to various consumers in industrial, commercial and domestic sectors.”

Dr. Yasmine Hilton, Chairman, Shell Companies in India, commented: “Shell is pleased to contribute to this opportunity with our partners as a LNG terminal in Andhra Pradesh will help meet the energy demand in the region. Natural gas is uniquely positioned to help meet energy and environmental challenges and we are encouraged by the State’s commitment to the project. We are grateful to the Chief Minister for taking this initiative forward.”  

Lucas Hautvast, CEO & President of GDF SUEZ Energy South Asia, Middle East and Africa, added: “GDF SUEZ, as one of the key stakeholders and strategic investors in Petronet LNG – the owner of India’s first LNG terminal – has a long history in the country. Soon after its acquisition of a majority stake in the 1000 MW Meenakshi coal-fired power project near Krishnapatnam port, the participation in the Kakinada LNG project confirms GDF SUEZ’s confidence in the Indian energy growth potential. We are excited to be part of the energy infrastructure development story that is taking shape in Andhra Pradesh and are proud to bring our experience in floating LNG to India for this first east coast terminal. We look forward to working with such prestigious partners as APGDC, GAIL and Shell to bring this project to fruition.”

Adapted from press release by

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