KGLNG gets green nod for Rs 1,270-cr expansion project in AP

Krishna Godavari LNG Terminal Pvt (KGLNG) has got green nod for development of an offshore LNG floating storage and re-gasification unit at Kakinada Deep Water Port in Andhra Pradesh at a cost of 1,270 crore.
Due to shortage of domestic supply of natural gas, the net gas supply made available to Andhra Pradesh is very low. KGLNG's proposed project is aimed to boost natural gas supply for various industries like fertiliser in the state.
"Based on the recommendations of the Expert Appraisal Committee (EAC), the Environment Ministry has given clearance to KGLNG's proposal," a senior government official said.
The clearance is subject to certain conditions, including obtaining prior permission from the Standing Committee of the National Board for Wildlife, the official added.

As per the proposal, KGLNG -- a special purpose vehicle of US-based VGS Group Inc -- will set up offshore LNG floating storage and re-gasification unit (FSRU) in two phases with a handling capacity of 3.60 million tonnes per annum (mtpa) in phase-I and ultimate capacity of 7.20 mtpa in phase-II to meet natural gas demand in the state and project region.
The total cost of the project is Rs 1,270 crore while that of phase-I will be Rs 870 crore that will be commissioned in 1 year after obtaining due clearance.

The phase-II project, which will cost Rs 400 crore, will be commissioned in 24 months after the commissioning of phase-I.

Among other conditions specified, KGLNG has been asked to obtain the 'consent to establish' from the State Pollution Control Board and comply with the conditions of the AP Coastal Zone Management Authority.
It has also been told to operate the terminal for 270 days in a year.