Petrogas has signed a memorandum of understanding (MoU) with Krishnapatnam Port (KPCL) and the Andhra Pradesh (AP) Government to set up a regasification and floating storage terminal with an investment of $500m.
The terminal would be built at Krishnapatnam Port and the investment would be made for the project’s first phase.
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Petrogas is a joint venture company between Malaysia’s Isomeric and India-based LEPL Ventures.
Indiatimes quoted AP energy, investments and infrastructure secretary Ajay Jain saying: "With a green and clean concept, the government of AP is encouraged to have Petrogas investing in it and the state will facilitate all approvals."
LEPL Projects power CEO Krishna Kumar said: "Petrogas will construct five million tonnes per annum capacity regasification and storage plant and related ancillary facilities like floating LNG storage tanks, regasification unit in phase-I, which is expected to cost $500m."
Krishna Kumar added that the company is working on a cost-effective solution in a bid to ensure adequate supply of gas for the power as well as industrial sectors of the state.
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By GlobalDataUnder phase-2 another terminal will be constructed which would also have five MTPA capacity.
The commercial operations for the project are expected to begin within a period of three years.
Image: Krishnapatnam Port in the Indian state of Andhra Pradesh. Photo: courtesy of Krishnapatnam Port.
