Krishnapatnam Port Company has signed a memorandum of understanding (MoU) with the Indian state government of Andhra Pradesh and Petrogas to establish an LNG regassification terminal.
Petrogas has announced an initial investment of Rs30bn ($448.8m) at Krishnapatnam, Nellore district, Andhra Pradesh, India, for the project which will commence within the next three years.
The LNG terminal will employ a floating storage and regassification unit (FSRU) enabled with a capacity of five million tonnes per annum (mtpa) which is expected to increase to ten mtpa in another three years.
The project is expected to generate more than 500 jobs.
Krishnapatnam Port Company managing director Chinta Sasidhar was quoted by Business Standard as saying: "The project is ambitious and we are proud to contribute to this opportunity.
"The infrastructure story of Andhra Pradesh is set on a promising horizon and projects of such scale will only provide a significant boost to the country’s trade potential, apart from creating immense job opportunities."
The MoU document stated that the Andhra government has agreed to grant necessary permissions to obtain the relevant environment clearances.
The partnership is expected to foster interoperability between the state government, Department of Energy, Infrastructure and Investments to establish the project.
Petrogas and Krishnapatnam Port will reportedly sign a separate deal on port services to execute the project, according to the MoU.
Petrogas is a joint venture of Isomeric Holdings Sdn Berhad and Indian firm LEPL Ventures Private Limited.
LEPL Projects CEO D V Krishna Kumar said: "Petrogas will construct 5 mtpa capacity regassification and storage plant and related ancillary facilities like floating LNG storage tanks, regassification unit etc in Phase I, which is expected to cost $500m."
Image: A ship at Krishnapatnam port. Photo: courtesy of Nellore.