CHENNAI: The Philippines-based AG&P (Atlantic, Gulf and Pacific Company) will set up a $200-million floating storage LNG import terminal at Karaikal Port Pvt Ltd, to source and supply regassified LNG to industries in the region.
Karthik Sathyamoorthy, President, LNG Marketing, AG&P, said that the one-million-tonne-a-year floating storage terminal is being set up following an exclusive arrangement with the Karaikal Port. It hopes to double the capacity in three years.
Additionally, it has also entered into an agreement with PPN Power Generating Company, a 330 MW gas-based independent power project at Nagapattinam in Tamil Nadu, to which it will supply LNG. This is the State’s largest IPP.
Karaikal Port is a deep water port on the East Coast about 250 km South of Chennai. The port received its environmental approval for this LNG Terminal development in May.
Sathyamoorthy said nearly one-third of the initial LNG capacity will be to PPN Power and the balance will be supplied to industries. A short pipeline link has to be created to GAIL’s Cauvery Basin gas pipeline network in the vicinity to supply the gas.
GRK Reddy, Chairman and Promoter Director of Karaikal Port, said the terminal will provide gas accessibility to Puducherry and Tamil Nadu.