India’s Andhra Pradesh state government has signed two MoUs for a floating LNG terminal in the state’s Kakinada deepwater port. An official statement said the MoUs were signed during a recent visit to Delhi by Chief Minister N Chandrababu Naidu’s.
The first MOU for the development of the terminal was inked between Andhra Pradesh Gas Distribution Company (APGDC), GDF SUEZ and Shell, said the statement.
APGDC is a joint venture company between the Andhra government and GAIL. APGDC, GDF SUEZ and Shell will have, respectively, 48, 26 and 26 percent equity in the project.
The second MoU was signed between GAIL, GDF SUEZ and Shell and covers sourcing of LNG and the marketing of the regassified LNG from the terminal. GAIL, GDF SUEZ and Shell will own, respectively, 48, 26 and 26 percent equity. The proposed terminal will be one of the first of its kind in India. The Kakinada port was found suitable for the project owing to its availability of a natural breakwater in Hope Island, which protects against high seas.