GMR Group Proposes to Build 1.75 MTPA LNG Terminal on India's East Coast

Private sector infrastructure developer GMR Group has proposed to build a 1.75 million tonne per annum (MTPA) LNG terminal in the eastern Indian state of Andhra Pradesh.

According to minutes of the meeting held by Expert Appraisal Committee (EAC) under the Ministry of Environment and Forests, the project would come up at Kakinada Deep Water Port (KDWP). The project envisages a start-up capacity of 1.75 MTPA which comprises of a captive use by GMR Energy Limited to the tune of 0.85 MTPA and the balance would comprise of domestic piped and non-piped domestic users within radius of 450 km.

The proposed LNG facility would consist of equipment for ship berthing and mooring, LNG unloading arms, LNG storage and transportation facility, onshore insulated cryogenic pipeline, LNG regasification facility and pipeline for connectivity to existing gas distribution grid.

While recommending the term of reference for the project, the EAC asked the company to conduct a public hearing, besides laying down other conditions.

Focus on east coast

Currently, all of India’s LNG import terminals are located on the west coast. However, companies have shifted focus towards the east coast and many projects have now been proposed. Indian Oil Corporation, GAIL, Petronet and KEI-RSOS are some of the firms proposing to build LNG terminals on the east coast.

All this investment makes sense given the government's focus towards increasing the share of gas in India’s energy mix. In an interview given to news agency Reuters, Dharmendra Pradhan said India will cut third off its emissions rate by 2030, partly by boosting the use of cleaner burning fuels. Currently, gas accounts for about 8 percent of India's energy mix, while oil accounts for more than a quarter.

According to a research report published by TechSci Research Demand for RLNG in India is forecast to increase at a CAGR of 21.6 percent during 2016-2025, due to increasing LNG terminal projects and cost-effectiveness of the fuel compared to other alternative fuels.