Kakinada SEZ inks MoU with APGDC
Kakinada SEZ Ltd., a subsidiary of GMR Infrastructure Ltd., has signed a Memorandum of Understanding (MoU) with the Andhra Pradesh Gas Development Corporation (APGDC) to get access to piped domestic natural gas for its upcoming 10,500-acre zone, according to a press statement by GMR Group. With this development, Kakinada SEZ would be the first zone on eastern coast of India to provide Piped Natural Gas (PNG) supply to all its industrial units. The zone, which is located in the Vizag-Chennai Industrial Corridor, offers 8521 acres of industrial land with another 1879 acres earmarked for a greenfield commercial port. The Kakinada SEZ lies 6 km away from the Kakinada Srikakulam pipeline. APGDC has agreed to lay a spur line from the main trunk line to the zone premises for facilitating piped gas access to commercial and industrial customers. Spur line APGDC, which is the authorised entity by PNGRB for laying, operating and expanding Gas Distribution Network in Andhra Pradesh, is executing the Kakinada – Srikakulam high pressure Natural Gas Pipeline (KSPL) to facilitate supply of gas for industrial use. The work for 90 km of phase I of the KSPL pipeline originating at Kakinada is already under way. Based on the industry demands, APGDC and GMR group have assessed the requirement of gas of around 0.5 MMSCMD in the initial two years with subsequent ramping up to 2 MMSCMD in 10 years. “The development will be a boon for gas-dependent industries like ceramics, glass, fertilisers and chemicals in this region,” said Challa Prasanna, CEO, Kakinada SEZ. Kakinada SEZ is going to be immensely benefitted as the ONGC plans to investment a whopping USD 5 Bn in its ultra-deep water DNW-98/2 field in the Krishna Godavari basin, which is expected to produce 15 MMSCMD of gas and have a land fall point near Kakinada.