Industry News

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 ResearchIndia 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.

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