Europe's largest LNG importer GDF Suex UK will take 26% stake in state-owned GAIL's proposed floating liquefied natural gas import terminal project on the east coast.
"Andhra Pradesh Gas Distribution Corp (APGDC), a company jointly promoted by GAIL Gas Ltd (GGL) and Andhra Pradesh Gas Infrastructure Corp Pvt Ltd (APGIC), signed a Project Framework Agreement (PFA) with GDF Suez LNG UK Ltd for jointly setting up a Floating Storage and Regasification Unit (FSRU) in offshore Andhra Pradesh," a company statement said.
GAIL Gas is a wholly-owned subsidiary of GAIL India.
GDF Suez in a separate statement said a feasibility study has been launched and would be completed by the end 2012, followed by a Final Investment Decision (FID) for the project.
"The commissioning date is expected in early 2014," it said.
The import terminal would have a 3.5 million tonne per annum capacity using a Floating Storage and Regasification Unit (FSRU).
GDF SUEZ would have a 26% stake in the import terminal, with an access to equity regasification capacities.
"The expertise of the GDF SUEZ Group in LNG import projects development will be mobilised in the study and after FID if it is granted," it said.
Jean-Marie Dauger, Executive Vice President GDF Suez, in charge of Global Gas & LNG business line said: "With a 10% stake in Petronet LNG Ltd and a medium term LNG sales agreement signed in 2011, GDF SUEZ confirms that India, and more generally Asia, as a core development region for its LNG business".
GDF Suez is present in India in the natural gas business since 1997, with a 10% stake in Petronet, the owner of LNG import terminals in Dahej and Kochi (under construction).
The GAIL statement said APGDC has been mandated to establish an LNG importation facility in the coast of Andhra Pradesh so as to narrow the gap between demand and supply position.
FSRU is a faster and low cost solution for LNG importation. This is the first of its kind in India.
