Petrogas Private Limited, a joint venture company between Isomeric Holdings Bhd from Malaysia and LEPL Ventures Pvt Ltd (LEPL) from Vijayawada, has signed a facilitation MoU with Krishnapatnam Port Company Ltd (KPCL) and Andhra Pradesh government for setting up a regasification and floating storage Terminal at Krishnapatnam Port.
Petrogas will commit a direct funding of over $500 million at Krishnapatnam, SPS Nellore District, Andhra Pradesh within the fields of LNG Regassification Terminal and allied industries.
“Petrogas will construct a 5 million tonnes per annum (MTPA) capacity regasification and storage plant and related ancillary facilities such as floating LNG storage tanks, regasification unit and others in phase one, which is expected to cost $500 million,” said S.D.V Krishna Kumar, the CEO-Power of LEPL Projects Ltd.
The LNG Terminal will use a state-of-the-art Floating Storage and Regasification Unit (FSRU) with a minimum capacity of 5 million tonnes per annum (mtpa) which will be doubled to 10 million MT in another three years time, according to a statement from the port authority.
The commercial operations for the project will commence within three years.
Krishnapatnam Port Company Ltd managing director Chinta Sasidhar said that the infrastructure story of Andhra Pradesh is set on a promising horizon and projects of such scale will only provide significant boost to the country's trade potential apart from creating immense job opportunities.
Krishnapatnam Port, promoted by the Hyderabad-based C.V.R. Group, is a privately built and owned all weather, deep water port.