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AG&P breaks ground on Indian LNG import facility

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LNG Industry,

AG&P has announced that it has broken ground on its LNG import facility at Karaikal Port, Puducherry, India.

The import facility is expected to commence commercial operations by 4Q21, and is owned and operated by AG&P. It is being built on a 12-hectare site within the Karaikal Port, which has the only deepwater access on the East Coast of India south of Chennai, with all-weather capabilities and 24/7 operations. Karaikal LNG, which will have an initial capacity of 1 million tpy, will include a floating storage unit (FSU) leased through a long-term charter agreement with ADNOC Logistics and Services (ADNOC L&S) from 2021, providing an efficient solution that will enable the supply of this clean fuel to be affordable.

The new terminal is strategically located 280 km south of Chennai and in close proximity to Tamil Nadu’s manufacturing industry. When complete, the facility will provide natural gas to power plants and industrial and commercial customers within a 300 km radius. In addition to this, Karaikal LNG will also provide fuel for the important city gas networks of AG&P and other city gas companies that bring CNG and LNG to vehicles and piped natural gas to households and other establishments. Truck loading bays will enable delivery of LNG to remote customers by AG&P’s own fleet of trucks.

JM Sigelman, CEO of AG&P, said: “AG&P is deeply honoured to have the opportunity to bring Karaikal LNG to fast-growing and dynamic Southeast India. It will become a landmark infrastructure development for the region and is ideally suited for the Karaikal Port, a critical centre of trade. AG&P takes on the value chain from import of LNG through to delivery of gas to end-customers – vehicles, kitchens, large and small factories, power, restaurants and malls.”

Karthik Sathyamoorthy, President of AG&P Terminals and Logistics, added: “Karaikal LNG is a cornerstone project for Pondicherry, Tamil Nadu and Karnataka that will provide clean, affordable fuel.

“With the addition of AG&P’s LNG import terminal, the Karaikal Port will become a gateway for the delivery of cleaner and lower-cost fuel to downstream demand centres that are unable to access natural gas today. Our goal is to bring down the unit cost of regasification terminals for smaller volumes to make LNG commercially viable for scattered and smaller customers. We will achieve this at Karaikal through the unique solution we are implementing with our partners such as ADNOC L&S.”

Abhilesh Gupta, AG&P’s CFO and Chief Commercial Officer, said: “Karaikal LNG will play a crucial role in the GDP of Southeast India. Karaikal LNG is a vital infrastructure project that will provide a substantial boost to the region’s economy. It will help improve the socioeconomic conditions of communities within a few hundred-kilometre radius through local employment and the development of industries via reliable and affordable access to natural gas and LNG.”

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