Progress on Andhra LNG project

Shell says that its moving closer towards implementing the Andhra LNG import terminal project at Kakinada Deepwater port – its submitted the draft Environmental Impact Assessment report and has signed the Port Services Agreement.

The Andhra LNG import terminal project Photo: Shell

This sets out the commercial arrangements underlying the development and operation of the required port facilities for the duration of the project.

India is an important market for Shell and it says that the states of Gujarat and Andhra Pradesh are the key markets for gas in India.

Shell has established a project company by the name of Andhra LNG Pvt Ltd to develop, implement and operate the terminal, which is set to become the first LNG import terminal on the East Coast of India.

Dr Yasmine Hilton, chairman of Shell Companies in India, said: “After the success of Shell’s Hazira terminal on the west coast, Shell is keen to set up an LNG receiving terminal on the east coast.”

Kakinada is a gateway port on the East Coast of India strategically between Visakhapatnam and Chennai Ports.

It handles a mix of bulk, liquid, break bulk, containers, project cargoes and offshore services resulting from the oil and gas exploration activities of the Krishna-Godavari Basin.