In a joint venture with Anil Ambani Group firm Reliance Power, Anglo-Dutch oil giant Royal Dutch Shell
is building a floating liquid gas (LNG) terminal off Kakinada in Andhra Pradesh.
The company plans to invest $1 billion in the terminal project by 2014 as it bets big on gas retailing in the energy deficit country.
Shell currently has a 3.6 million tonne liquefied natural gas (LNG) import facility at Hazira in Gujarat. By end of the quarter, the firm expects to import 5 million tonne at Hazira.
The firm plans to double capacity to 10 million tonne at its Hazira terminal in 3-4 years while the Kakinada terminal would also be doubled in near future. Shell-Reliance Power’s Kakinada port is the same for which state-owned gas utility GAIL India had roped in French utility GDF Suez and signed pact with Andhra Pradesh government for a 3.5 million tonnes floating LNG receipt facility.
Kakinada is also the landfall point of billionaire Mukesh Ambani-led Reliance Industries’ flagging KG-D6 gas fields in the Bay of Bengal, and a near 1,400-km line carries the fuel from there carries the fuel to consumption centres in the west.
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