- The AP Gas Development Corporation, Gas Authority of India, GDF Suez and Shell signed two MoUs for seting up an Rs 1800 crore floating LNG terminal at Kakinada deep water port.
- This would be the first LNG terminal on the East Coast of India when ready.
- The Kakinada LNG terminal will use the Floating Storage and Regasification Unit (FSRU) with a peak capacity of 5 million tonnes a year (mtpa) and a provision to double the capacity.
- The Kakinada port was found suitable for a project of this nature, owing to its availability of a natural break-water in the Hope Island, a barrier that protects against the impact of high seas.
- As natural gas is emerging as a significant fuel for economic development of the country and the LNG terminal termed as the safest gas storage system, the Kakinada terminal is set to play a far reaching role in making natural gas available to various consumers in industrial, commercial and domestic sectors.