The Andhra Pradesh government is entering into an agreement with an international firm, GDF SUEZ LNG UK LTD, for setting up a floating storage regasification unit (FSRU) on the state’s east coast. The agreement will be signed tomorrow (Tuesday) at Delhi.
The FSRU terminal would be developed by GAIL (India) Limited and Andhra Pradesh Gas Distribution Corporation (APGDC) with an estimated cost of Rs 4,000 crores. This would have a capacity for regassification of LNG of 15 mmscm per day, according to an energy department release.
APGDC, a joint venture between GAIL (India) Ltd and Andhra Pradesh Gas Infrastructure Corporation Ltd (APGIC), has been formed to create the natural gas pipeline infrastructure and other related facilities and establish an LNG importation terminal on the coast of AP so as to narrow the gap between the demand and supply position in the state.
In the west coast of the country, there are already three operating terminals while this would be the first RLNG infrastructure facility to import natural gas on the eastern coast and AP in particular, the release said.
“Due to the above RLNG, the additional power generation of 3,000 Mw (72 mu/day) would be available to the state. This would be made operational by the end of 2013. The average cost would be around Rs 6 per unit as compared with the present RLNG variable cost of around Rs 9 per unit,” it said.