GAIL, GDF, Shell Sign India FLNG JV Agreements

Andhra Pradesh Gas Distribution Corporation (APGDC), GDF Suez, Shell and GAIL have signed two separate Memorandums of Understanding (MoUs) for a floating LNG terminal in Kakinada, Andhra Pradesh, India.

The project is expected to be executed in 18 months.

The first MoU is between APGDC, GDF Suez and Shell and supports the development of the terminal. APGDC (a JV company between the Government of AP and GAIL), GDF SUEZ and Shell will have 48%, 26% and 26% equity in the project respectively, GAIL India said Friday.

The second MoU is between GAIL, GDF Suez and Shell and covers both the sourcing of LNG and the marketing of the regasified LNG from the terminal. GAIL, GDF Suez and Shell will have 48%, 26% and 26% equity in the project respectively.

The Kakinada LNG terminal will use Floating Storage and Regasification Unit (FSRU) with a peak capacity of 5 million tonnes per annum (mtpa) with the provision to double the capacity.