GMR to invest Rs 471 cr to set up LNG terminal on east coast

Company has proposed for development of LNG facility with capacity of 1.75 MTPA at Kakinada Deep Water Port

GMR Group is in the process of setting up an LNG (liquefied natural gas) terminal at Andhra Pradesh's Kakinada sea port with an investment of Rs 471 crore.

According to minutes of the meeting held by Expert Appraisal Committee (EAC) under the Ministry of Environment and Forests, the project envisages a start-up capacity of 1.75 million tonnes per annum (MTPA) which comprises of captive use by GMR Energy Limited to the tune of 0.85 MTPA, with the balance for domestic piped and non-piped users within a radius of 450 kms.

"GMR Holding Pvt Ltd has proposed for development of LNG facility with capacity of 1.75 MTPA at Kakinada Deep Water Port (KDWP) berth 7 located adjacent to survey no. 317/318, GMR barge mounted power plant located at survey no. 411, 413, tehsil Kakinada, district East Godavari, Andhra Pradesh.

"The proposed LNG facility consists of the following- development of necessary facility/ equipment for ship berthing and mooring, LNG unloading arms with all safety measures, LNG storage and transportation, onshore insulated cryogenic pipeline, LNG regasification facility and pipeline for connectivity to existing gas distribution grid," the EAC said.

While recommending the term of reference for the project, the EAC asked the company to conduct a public hearing, besides laying down other conditions.

"During presentation, project proponent (GMR) informed that regasification plant will also be installed at berth no. 7. Cost of project is Rs 471 crore. Power requirement will be 8 MW. Coringa Wildlife Sanctuary is located at a distance of 1.5 kms south," it said.

Meanwhile, the EAC deferred its decision on environmental and CRZ clearance in case of proposed greenfield facility for import of 5 MMTPA LNG Floating Storage Unit (FSU) and handling facility within Krishnapatnam Port Ltd, Nellore, Andhra Pradesh by LNG Bharat Pvt Ltd.

The committee suggested the project proponent that it should submit all the requisite documents to Andhra Pradesh Coastal Zone Management Authority as sought by them.