Shell bets big on India with its second LNG terminal

Royal Dutch Shell, which set up a 5 million tonne LNG terminal at Hazira in Gujarat nearly a decade back, is targeting to grab a bigger share of the growing demand for imported gas in India. The Hague-based global energy giant is planning to set up a floating LNG facility on the east coast, at at Kakinada in Andhra Pradesh. Recently, Andhra Pradesh Gas Distribution Corporation (APGDC), GDF Suez, Shell and GAIL signed a MoU to set up a floating LNG terminal with an initial capacity of 5 mt, which could be doubled at a later stage.

Although the company did not reveal the cost of the project, a 5 MT LNG terminal is expected to cost around $1 billion. Shell believes that floating LNG terminal will the next big thing. The global energy giant has been working on this technology since the nineties.