Shell considers 30% stake in Gail FSRU
Royal Dutch Shell may acquire a 30% stake in Gail (India) Ltd’s proposed floating storage and regasification unit (FSRU) import terminal project at Kakinada in Andhra Pradesh.
Last year Shell revealed plans to construct a 5 million tpa FSRU terminal offshore Kakinada in partnership with fellow Indian company Reliance Power. However, Reliance Power withdrew from the project. Shell consequentially accepted a floating liquefied natural gas (FLNG) alliance with Gail.
Shell are said to be interested in a 30% hold in the project. GDF Suez UK, the original partners with Gail for the Kakinada terminal are set to take a 26% stake. The remaining 44% will go to Andhra Pradesh Gas Distribution Corp Ltd.
A spokesperson for Shell India said: “Shell can confirm that the company is in exploratory discussions with GAIL and other potential partners on the Kakinada LNG project. As the discussions are still preliminary, we cannot comment on any specifics at the moment.”
The FSRU, which is expected to have capacity of up to 5 million tpa, is set to be made to order by 2015 and will serve domestic markets.
Edited from various sources by Ted Monroe
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/25112013/shell_considers_thirty_percent_stake_in_gail_fsru/
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