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New LNG terminal at Karaikal Port to boost natural gas supply in India

by The Editorial Team
February 24, 2020
in Fuels
jana port fees

Above image is used for illustration purposes only / Credit: Shutterstock

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Singapore-based LNG company AG&P announced plans for a new LNG Import Facility at Karaikal Port, Puducherry, paving the way to broader access to natural gas as a primary fuel in South India. The Karaikal LNG Import Facility (Karaikal LNG) is expected to commence commercial operations by Q4 2021.

The advantage of the Karaikal LNG Import Facility is that it is being built on a 12-hectare site within the Karaikal Port, which enjoys the only deep-water access on the East Coast of India south of Chennai, with 24/7 operations.

It will become a landmark infrastructure development for the region and is ideally suited for the Karaikal Port, a critical center of trade. AG&P takes on the value chain from import of LNG through to delivery of gas to end-customers – vehicles, kitchens, large and small factories, power, restaurants and malls. Karaikal LNG is a cornerstone project for Pondicherry, Tamil Nadu and Karnataka that will provide clean, affordable fuel,

…JM Sigelman, CEO of AG&P, said.

Owned and operated by AG&P, Karaikal LNG is expected to have an initial capacity of 1 million tonnes per annum (MTPA).

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The facility will include a Floating Storage Unit (FSU) leased through a long-term charter agreement with ADNOC Logistics and Services (ADNOC L&S) from 2021.

Strategically located 280 km south of Chennai and in close proximity to Tamil Nadu’s thriving manufacturing clusters, the new terminal will provide natural gas to power plants, industrial and commercial customers within a 300 km radius.

In addition, Karaikal LNG will serve the city gas networks of AG&P and other city gas companies that bring CNG and LNG to vehicles and piped natural gas to households and other establishments.

With the addition of AG&P’s LNG import terminal, the Karaikal Port will become a gateway for the delivery of cleaner and lower-cost fuel to downstream demand centers that are unable to access natural gas today,

…noted Karthik Sathyamoorthy, President of AG&P Terminals and Logistics.

Karaikal LNG is a vital infrastructure project that will provide a substantial boost to the region’s economy. It will help improve the socioeconomic conditions of communities within a few hundred-kilometer radius through local employment and the development of industries via reliable and affordable access to natural gas and LNG,

…Abhilesh Gupta, AG&P’s CFO and Chief Commercial Officer, commented.

New LNG terminal at Karaikal Port to boost natural gas supply in IndiaNew LNG terminal at Karaikal Port to boost natural gas supply in India
New LNG terminal at Karaikal Port to boost natural gas supply in IndiaNew LNG terminal at Karaikal Port to boost natural gas supply in India
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