news Saturday, January 17, 2015 - 05:30
The News Minute | January 17, 2015 | 7:50 am IST The Andhra Pradesh government has signed two MoUs with oil firms for a floating Liquefied Natural Gas (LNG) terminal in the state's Kakinada deep water port, an official statement said Friday. The MoUs were signed during Chief Minister N. Chandrababu Naidu's two-day visit to Delhi, which ended on Friday. 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 48, 26 and 26 percent equity in the project respectively. The second MoU was signed between GAIL, GDF SUEZ and Shell and it covers sourcing of LNG and the marketing of the re-gassified LNG from the terminal. GAIL, GDF SUEZ and Shell will have 48, 26 and 26 percent equity in the project respectively. "This MOU will bring the best expertise and technology from all over the world to complete the project within 18 months," said the chief minister. The development of this project will ensure continuous availability of natural gas to Andhra Pradesh. The project would provide additional revenue, to the state to the tune of about Rs.1,700 crore and employment for about 2,000 people. The Kakinada LNG terminal will use a state-of-the-art Floating Storage and Regasification Unit (FSRU) with a peak capacity of 5 million tonnes per annum (mtpa) with the provision to double the capacity. The proposed terminal will use high-end technology and will be one of the first of its kind in India. The Kakinada port was found suitable for a project of this nature owing to its availability of a natural break-water in the Hope Island - a barrier that protects against the impact of high seas. IANS Tweet Follow @thenewsminute

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