The company has signed an exclusivity agreement with Karaikal Port (KPPL) in this regard. Under the terms, AG&P will also be responsible for the sourcing and supply of LNG.
Upon being commissioned around mid-2019, the new gateway terminal is anticipated to provide wider access to cleaner and cheaper fuel to industries and communities in Puducherry and Tamil Nadu.
AG&P LNG marketing president Karthik Sathyamoorthy said: “AG&P’s innovative approach will establish Karaikal as a major gateway for distributing LNG, CNG and gas quickly and efficiently to customers throughout the region.
“Leveraging its standardized designs and modular approach to building terminals developed in AG&P’s Houston, Texas Engineering Center, AG&P not only eliminates expensive, bespoke engineering costs, but significantly reduces construction time.”
The Karaikal Port, where the new LNG terminal will be built, is a deep-water facility located on the Indian east coast. According to AG&P’s, the new facility is expected to complement Indian Oil’s LNG terminal, being built at Ennore, 300km to the north.
KPPL chairman and promoter director GRK Reddy said: “Karaikal Port is a center of trading for Southeast India and is crucial to the region’s GDP. With the addition of AG&P’s LNG import terminal, Karaikal Port will continue to be an engine of growth for the region’s future.”
AG&P has also reached a deal for the LNG supply with PPN Power, the owner and operator of a 330.5MW gas cum Naphtha-fired combined cycle power plant in Nagapattinam district in Tamil Nadu.
Image: Karaikal Port. Photo: courtesy of KPPL.
