AG&P and Hindustan LNG to set up terminal in Andhra Pradesh

The two firms will supply tolled gas to power stations in East Godavari region of the state

AG&P (Atlantic, Gulf and Pacific Company), a global player in LNG solutions, including LNG terminals and supply chain, and Hyderabad-based Hindustan LNG, have signed a memorandum of understanding to supply tolled gas to power stations in East Godavari region of Andhra Pradesh.

Under the agreement, AG&P will provide an integrated solution to deliver regasified LNG through a new LNG import terminal that it will also design and build in Andhra Pradesh.

"Andhra Pradesh is the ideal place for developing an LNG import facility to serve the growing energy demands of the east coast of India where existing gas-fired power projects urgently need a reliable supply of LNG. The partnership with AG&P will provide a strong platform to develop a fast-track and low-cost LNG import solutions that enables the region to continue on its growth trajectory,"HLNG chairman C R Prasad said.

AG&P will be responsible for designing and building all the required facilities for the import terminal, including a floating storage and mooring system, regasification terminal, related utilities and the provision of tolled gas to power plants and other users, according to Prasad.