NGC Energy, a joint venture between National Gas Company of Oman and Petredec India Pte Ltd, Singapore, is setting up an LPG import and storage terminal at Krishnapatnam Port at an investment of around Rs 400 crore.
The Foundation Stone for the terminal was laid by Abdulla Suleiman Hamed Al Harthy, Chairman, NGC Energy today.
The refrigerated LPG import and storage terminal will have a storage capacity of 30,000 tonnes and a throughput capacity of 1.4 million tonnes per annum for servicing public sector and private sector companies in the hinterland.
The new terminal, which will help bridge the demand-supply gap, aims to reach around eight million households in the hinterland. The project is also expected to generate direct and indirect employment for over 400 people, thus benefiting the region, al Harthy said.
According to the company, India is the world's second-largest consumer and importer of LPG. Demand is growing at about seven per cent a year, while the offtake in the south is growing at six per cent. Imports are slated to increase to 60-70 per cent of the consumption.
The port is strategically located to serve the hinterland regions of Andhra Pradesh, Telangana, Karnataka and Tamil Nadu.
NGC Energy India was established in the year 2018, heralding entry of National Gas of Oman’s entry into India to set up a greenfield LPG import terminal.
In September this year, National Gas Company signed a definitive agreement with global petrochemical, gasoline and shipping giant Petredec to transfer 40 per cent shares of NGC Energy, making it a joint venture company.