Karaikal LNG import terminal in the pipeline

AG&P is developing a scaleable LNG import terminal at Karaikal Port Photo: KPPL AG&P is developing a scaleable LNG import terminal at Karaikal Port Photo: KPPL

A new LNG import terminal at India's Karaikal Port is set to widen the country's gas accessibility in 2019.

Atlantic Gulf and Pacific Company's (AG&P) terminal will serve the heavily industrialised region of central Tamil Nadu plus serve the gas-fired power industry and multiple demand centres via a pipeline and/or city gas distribution network saving costs of up to 40%.

“The unique terminal configuration uses AG&P’s standardised design, eliminating costly bespoke engineering, which allows for scalable LNG terminal infrastructure that can be modularly built and is significantly faster and cheaper to construct,” said Abhilesh Gupta, chief financial officer and commercial head, AG&P.

Industrial demand

Mr Gupta added that the terminal has the flexibility to increase capacity on a fast-track basis and grow in line with region’s rising demand for gas supply.

The terminal design also incorporates offshore and onshore infrastructure, making best use of the deep-water location within the port.

AG&P’s LNG import terminal will have a start-up capacity of 1 million tonnes per annum (MTPA) which is expected to double to 2 MTPA almost immediately to meet industrial demand.

The final investment decision on the terminal is expected is expected by mid-2018, immediately following the FEED completion. The LNG terminal will be commissioned by mid-2019.

India is the fourth largest importer of LNG in the world. The Indian Government recently announced its plans to build 11 LNG import terminals over the next seven years and double the contribution of natural gas to the country’s energy mix to 15% by 2020.

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