Krishnapatnam Port Company inks agreement for setting up LNG Regasification Terminal

Krishnapatnam port company in the Nellore district of Andhra Pradesh on Monday said that it has signed a memorandum of understanding (MoU) with Petrogas Pvt. Ltd. and the Government of Andhra Pradesh for setting up a LNG Regasification Terminal.

Petrogas will commit a direct investment of Rs. 3,000 crore at Krishnapatnam, SPS Nellore District, Andhra Pradesh in the fields of LNG Regassification Terminal and allied industries.

The MoU which is between Krishnapatnam Port (represented by C. Sasidhar - Managing Director), the Andhra Pradesh government (represented by V Ravi Kumar - Director of Ports) and Petrogas which is a JV of Isomeric Holdings Sdn Berhad and Vijayawada-based LEPL Ventures Private Limited (represented by Sri SDV Krishna Kumar) was signed in the presence of Nara Chandrababu Naidu, the Chief Minister of Andhra Pradesh.

The LNG Terminal will use a state-of-the-art Floating Storage and Regasification Unit (FSRU) with a minimum capacity of 5 million tonnes per annum (mtpa) which shall be doubled to 10 million MT in another three years time.

The commercial operations for the project will commence within three years and is expected to create more than 500 job opportunities.

Chinta Sasidhar - Managing Director, Krishnapatnam Port Company Limited said, "The project is ambitious and we are proud to contribute to this opportunity along with our esteemed partners. The infrastructure story of Andhra Pradesh is set on a promising horizon and projects of such scale will only provide significant boost to the country's trade potential apart from creating immense job opportunities."

"We are extremely grateful to the Government of Andhra Pradesh for the tremendous support and co-operation towards relevant clearances, permits and licenses, and support from allied industries." he further added.

Krishnapatnam Port promoted by the Hyderabad-based C.V.R. Group is a privately built and owned all weather, deep water port on the east coast of India, located in the Nellore District of Andhra Pradesh.

Krishnapatnam Port Company Ltd. (KPCL) which was formed by winning the mandate from the Govt. of Andhra Pradesh on BOST (Build-Operate-Share-Transfer) concession basis for 50 years is being built in three phases and currently the second phase is underway.