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.