Work on LNG terminals moves at a snail’s pace

Work on LNG terminals moves at a snail’s pace

Even as two Floating Storage and Re-gasification Unit (FSRU)-Based Liquefied Natural Gas terminals have been proposed at Kakinada Deep Water Port, the work seems to be moving at a snail’s pace. For one project all the required clearances have been issued by the departments concerned, but the promoters are in search of investment, while the documentation work is nearing completion for the second project, which is going to be established by a foreign company.

Environmental public hearings were completed in December, 2014 for the LNG terminal proposed to be built by the A.P. Gas Distribution Corporation Limited (APGDC), Gas Authority of India Limited (GAIL) and Shell and Engie Global LNG on an island jetty located in the sea about 1.5 km from the Kakinada coast.

Paper work completed

“The project got all the clearances from the Ministry of Environment and Forests and the paper work has also been completed. Works can be commenced at any moment,” says RavindraBabu, Amalapuram MP.

According to sources, the promoters are on the job of pooling the investment, as the estimated project cost is about Rs. 1,800 crore.

Similarly, the environmental public hearing for the second LNG project to be undertaken by the U.S.-based VGS Group Inc, through the Krishna Godavari LNG Terminal Private Limited, was completed in November 2015 and the promoters of the project are ready with the finances to commence the works, once the clearances are issued by the departments concerned.

The terminal with a capacity of 3.6 MMT of liquefied natural gas per annum will be located near the Kakinada Deep Water Port and is going to be the first foreign venture with 100 per cent American funding in the State.

Orders awaited

It is learnt that the promoters are waiting for orders from the Ministry. They, however, have applied for permissions to commence the construction works. In all likelihood, everything will be crystallized in a couple of weeks from now.

The re-gasification units established in the sea will convert the LNG into natural gas and the same will be transmitted to the landfall points through subsea pipelines. Te gas will then be transported to the clientele ranging from industrial units to power projects. As the firm is ready with designs and funds, the works will be commenced without any delay once the orders are issued.

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