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AG&P to develop LNG import terminal in India

Published by , Senior Editor
Tanks and Terminals,

Atlantic, Gulf and Pacific Company (AG&P) has signed an exclusivity agreement with Karaikal Port Pvt Ltd (KPPL) to develop an LNG import terminal at the port, including LNG sourcing and supply.

AG&P has also executed exclusivity with PPN Power to supply LNG.

The port has allocated an area within its existing breakwater to develop an LNG terminal to serve power, industrial and other customers in the region. The port received Environmental Approval (EA) for this LNG terminal development in May 2017.

GRK Reddy, Chairman and Promoter Director of KPPL, said: “Karaikal Port is a centre of trading for Southeast India and is crucial to the region’s GDP. With the addition of AG&P’s LNG import terminal, Karaikal Port will continue to be an engine of growth for the region’s future. Offering an all-weather operation with a breakwater ensuring 99% availability, night navigation, limited dredging requirements, proximity to GAIL’s existing Cauvery Basin gas pipeline network and 24/7 access to port services, we are immensely proud of the Port’s facilities that attracted AG&P to this prime site.”

The development of the LNG import terminal at the port will complement Indian Oil’s LNG terminal that is currently under construction at Ennore, 300 km to the north. It will also provide wider gas accessibility to Puducherry and Tamil Nadu. It will serve the Tamil Nadu region, which has major manufacturing clusters for the fertilizer, cement, steel, textile, leather, sugar and garment industries located within its 300 km catchment area. The LNG terminal will also serve the gas-fired power industry as well as multiple demand centres via pipeline and/or city gas distribution network.

GRK Reddy added: “AG&P’s coming Karaikal LNG terminal is a landmark development that will accelerate industrialisation, create jobs, trigger overall economic and social development and lead to much needed cleaner air. It will improve the quality of life for millions of Indians.”

Karthik Sathyamoorthy, President, LNG Marketing, AG&P, said: “AG&P’s innovative approach will establish Karaikal as a major gateway for distributing LNG, CNG and gas quickly and efficiently to customers throughout the region. Leveraging its standardised designs and modular approach to building terminals developed in AG&P’s Houston, Texas Engineering Center, AG&P not only eliminates expensive, bespoke engineering costs, but significantly reduces construction time. This means the terminal will be up and running by mid-2019.”

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