GAIL India today said its subsidiary GAIL Gas has signed an agreement to set up a Rs 5,000 crore liquefied natural gas (LNG) import facility around Kakinada or Vishakapatnam in Andhra Pradesh.

“GAIL Gas, a wholly-owned subsidiary of GAIL India, yesterday signed a Memorandum of Understanding (MoU) with the government of Andhra Pradesh” for setting up the import facility, the company said in a press statement here.

The MoU was signed by GAIL Gas CEO J Wason and Andhra Pradesh Principal Secretary (Investment and Infrastructure) S Bhattacharya.

“The Floating Storage and Re-gasification Unit (FSRU)/ Liquefied Natural Gas (LNG) terminal of 3.5 to 5 million tonnes per annum will be set up around Kakinada/Vishakapatnam and is likely to be the first such facility on the east coast of the country with an estimated investment of Rs 5,000 crore,” the statement said.

The proposed facility would supply regassified-LNG, a preferred feedstock for power, industrial and other sectors to meet the growing needs of the state.

Andhra Pradesh Gas Distribution Co (APGDC), a joint venture of GAIL Gas and APGIC will execute the project with the support of GAIL and work will be completed by 2012-13.

“The company is in the process of finalising an upstream partner for project execution and LNG supplies to the proposed terminal,” it said.

As per the MoU, the Andhra Pradesh government will facilitate GAIL Gas/APGDC to obtain necessary permissions, registrations, approvals, clearances, etc from the concerned departments to set up the project.

source: http://www.Business-Standard.com / Home> Companies & Industry/ Press Trust of India, New Delhi / January 13th, 2012