AP govt takes steps to boost oil and gas sector

Andhra Pradesh government has taken a series of initiatives in the recent past to promote oil and gas projects in the state.

For example, the state government is keen to expedite an LNG re-gassification terminal project – a floating one with a capacity of 3.5 mn tpa in Kakinada, which is to be upgraded to 5 mn tpa.

AP Gas Distribution Corporation Limited (a joint venture of Gail Gas and AP Gas Infrastructure Corporation) and KSPL will set up the project.

The project cost is estimated at Rs 5,000 crore. The first phase of it may be ready by 2014, facilitating LNG import.

Meanwhile, the state government is also monitoring the status of another LNG terminal project which would be set up by a consortium of Shell, Reliance and the promoter of Kakinada port.

The consortium is setting up a 5-million-tonne a year (mn tpa) LNG terminal in Kakinada and this would be expanded later to 10 mn tpa.

The draft environment assessment impact report has been prepared for the Rs 7,000-crore project and submitted to the Andhra Pradesh Pollution Control Board.

In another initiative, the state government signed a memorandum of understanding with the GMR group for setting up a 15-mn tpa refinery and petrochemical complex.