Ministry of Environment & Forest (MOEF) granted permission to Krishna Godavari LNG Terminal Pvt. Ltd (KGLNG) for development of Offshore LNG Floating Storage and Regasification unit in Andhra Pradesh
India: KGLNG
has been granted environment clearance from MOEF for setting up an offshore LNG
Floating Storage and Re-gasification unit (FSRU) at Kakinada Port in Andhra Pradesh.
However, the project is waiting for approval from Standing
Committee of the National Board for Wildlife.
The project would be completed in two phases with an estimated cost of around
USD 188 Million with technical assistance of US based VGS group Inc. The
Phase-I FSRU will be installed with handling capacity of 3.60 million tons per
annum (MTPA) with final capacity of 7.2 MTPA in phase II. The timeline for
the project completion is about 3 years from obtaining all the due clearances.
TechSci Research depicts that India is aggressively expanding its LNG terminal
capacities to cater to the increasing demand of natural gas. Government has
also announced revised guidelines in “Gas Allocation Policy” to prioritize
natural gas supply to various end-user segments that include City Gas
Distribution for households and transport sector, fertilizers sectors, power
plants and industrial sector. In addition, emergence of SSLNG market is opening
up new opportunities for the industry. Other policies like E-bid RLNG are also
expected to play a crucial role for supplying imported RLNG to power plants and
fertilizer industry.
According to a recent report published
by TechSci Research, “India LNG
Market Forecast &
Opportunities, 2025”, the total opportunity for RLNG in India is projected to
increase from an estimated 52.34 mmscmd in 2016 to 305.10 mmscmd by 2025,
registering a CAGR of more than 21% during 2016–2025. Upcoming LNG terminal
projects, surging demand for natural gas in India and cost-effectiveness of LNG
as compared to other alternative fuels are the major factors anticipated to
positively influence the country’s LNG market scenario over the next ten years.