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GDF SUEZ has signed twin agreements with Shell and the Indian companies Andhra Pradesh Gas Distribution Corporation (APGDC) and GAIL for a floating LNG terminal in the port of Kakinada, a city of more than 380,000 residents on the Bay of Bengal. The new floating terminal will be built within the next 18 months.
A major first for India. The LNG terminal that will be completed within the next 18 months at Kakinada on the Bay of Bengal in the south-eastern Indian state of Andhra Pradesh will use the very latest floating storage and regasification unit (FSRU) technologies. Its total capacity of five million metric tons per year is designed to be doubled, if necessary.
This technical feat has been made possible by the natural breakwater provided by the sand spit known as Hope Island, which reduces the impact of ocean waves, and thanks to the expertise of GDF SUEZ Energy South Asia, Middle East and Africa (SAMEA) and its project partners: the international company Royal Dutch Shell and Indian companies Andhra Pradesh Gas Distribution Corporation (APGDC) and GAIL. The Group has signed two agreements: one to develop the terminal and provide it with LNG, and the other to market the regasified LNG on the basis of a 26% equity stake.
Natural gas becomes a liquid at -160°C, reducing its volume by a factor of 600. Transported by sea in specially designed LNG carriers, liquefied natural gas is the ideal solution for benefiting from reserves on other continents where markets cannot be supplied using gas pipelines. Brought ashore at LNG terminals, the liquefied gas is then stored, regasified and injected into the natural gas supply network. More environmentally friendly and less expensive, LNG is increasingly used by industry as its fuel of choice.
Lucas Hautvast, Chairman and CEO of GDF SUEZ Energy SAMEA, is clear that: "The Group's involvement in the Kakinada LNG project confirms its belief in the growth potential of the Indian energy sector." The project is an excellent opportunity to ensure continuity of natural gas supply to meet demand for energy in this region. For many countries, FSRU LNG projects offer the fastest and most cost-efficient solution for reliable energy supply with lower air pollution.