AG&P Inks MoU for India FSRU Project

Philippines based AG&P has signed a MoU with Indian Hindustan LNG to provide an integrated solution to deliver regasified LNG through a new LNG import terminal that will be built in the state of Andhra Pradesh on India’s east coast.

The tolled gas will be supplied to power plants in the East Godavari region of Andhra Pradesh, AG&P said January 29. AG&P will be responsible for designing and building all the required facilities for the import terminal, including a floating storage and mooring system, regasification terminal, related utilities and the provision of tolled gas to power plants and other users. AG&P will also carry out any necessary conversion works and, upon commissioning, ongoing operations and maintenance activities.

India’s eastern states are grossly underserved when it comes to gas as all four of country’s LNG import terminals are on the west coast while about four fifths of total gas demand takes place in the north and west. However, the next few years will see a number of terminals come up on the east coast as well: Indian Oil is developing a terminal at Ennore in the southern state of Tamil Nadu; India’s biggest gas importer Petronet LNG is building a terminal at Gangavaram; and Gail is in partnership with a state corporation, Shell and France's Engie (formerly GDF Suez) to build a terminal at Kakinada. According to India’s oil ministry, the country’s terminal capacity is expected to more than double by 2022.

This bodes well for the government’s plan to increase the share of gas in the energy mix from current 6% to more than 10% in near future. 

Shardul Sharma