The LNG floating and processing plant near Kakinada in Andhra Pradesh would handle 3.5 million tonne of gas per annum when it becomes operational, reports suggest.
The plant, which is being jointly set up by Andhra Pradesh Gas Distribution Corporation, French company GDF Suez and Gail Gas (part of GAIL), would be operational by December next year.
This will significantly ease pressure on gas supply in the region and on power projects. S Venkataraman, Director, Business Development, GAIL (India), said the floating, storage and re-gasification LPG terminal, when commissioned, will help gas-starved power plants. This is equivalent to 14 mmscmd.
Typically, 1 mmscmd of gas is sufficient to power a gas plant of 220 mw. If the entire gas is used up by power plants, it will be adequate to support about 3,000-3,100 mw.
But the issue is whether independent power producers and others who need gas will be able to buy gas at the market-driven prices. The cost will include imported gas price, transportation cost, liquefication and evacuation to site, reports suggest.
It is learnt that the project developers are taking efforts to strike deals and enter into long-term supply contracts with local partners across the globe. GAIL has set up a subsidiary in Singapore apart from entering gas-rich countries by setting up offices and a joint venture for shale gas.
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