GMR Group is planning to set up an LNG terminal at Andhra's Kakinada port
India: GMR group has decided to
build an LNG terminal at Kakinada sea port in Andhra Pradesh which involves an
investment of INR471 crore. As per the minutes of meeting held by Expert
Appraisal Committee under the Ministry of Environments and Forests, the
proposed LNG terminal will have a start-up capacity of 1.75 million tonnes per
annum (MTPA). The natural gas received from the terminal will be used by GMR
Energy Limited and domestic piped and non-piped users of natural gas within a
radius of 450 Kilometers to the terminal.
TechSci Research finds out that increasing
focus on expansion of gas pipeline infrastructure in the country and increasing
demand of natural gas from power and industrial sectors will bolster the market
for LNG business in India. Apart from that the government is taking initiatives
by focusing on providing environmental clearances to build LNG infrastructure
in the country. The power sector is the biggest consumer of natural gas and
with availability of natural gas, the gas based power plants can be operated
without any interruption which is the current scenario i.e. gas based power
plants have been ideal due to feedstock problem.
According to released report of TechSci Research “India LNG Market Forecast & Opportunities, 2025”, the LNG market in India is going to expand at a CAGR of above 21% by
2025. The upcoming LNG projects in the country is a big boost for LNG market in
the country because the demand of natural gas from the end users of LNG can be
met by developing associated infrastructure. The development of LNG terminal
gains importance from the fact that India is highly dependent on import of LNG
via Sea route to meet its requirement for natural gas.