KGLNG gets green nod for Rs 1,270 cr expansion project in AP

Krishna Godavari LNG Terminal Pvt (KGLNG) has got green nod for development of an offshore LNG

floating storage and re-gasification unit at Kakinada Deep Water Port in Andhra Pradesh at a cost of

1,270 crore. Due to shortage of domestic supply of natural gas, the net gas supply made available to

Andhra Pradesh is very low. KGLNG's proposed project is aimed to boost natural gas supply for

various industries like fertiliser in the state. "Based on the recommendations of the Expert Appraisal

Committee (EAC), the Environment Ministry has given clearance to KGLNG's proposal," a senior

government official said. The clearance is subject to certain conditions, including obtaining prior

permission from the Standing Committee of the National Board for Wildlife, the official added. As

per the proposal, KGLNG — a special purpose vehicle of US-based VGS Group Inc — will set up

offshore LNG floating storage and re-gasification unit (FSRU) in two phases with a handling capacity

of 3.60 million tonnes per annum (mtpa) in phase-I and ultimate capacity of 7.20 mtpa in phase-II to

meet natural gas demand in the state and project region. The total cost of the project is Rs 1,270

crore while that of phase-I will be Rs 870 crore that will be commissioned in 1 year after obtaining

due clearance. The phase-II project, which will cost Rs 400 crore, will be commissioned in 24 months

after the commissioning of phase-I. Among other conditions specified, KGLNG has been asked to

obtain the 'consent to establish' from the State Pollution Control Board and comply with the

conditions of the AP Coastal Zone Management Authority. It has also been told to operate the

terminal for 270 days in a year.

NGS INDIA