New Delhi: India's largest natural gas importer Petronet LNG Ltd has entered into an agreement with Gangavaram Port Ltd to establish its third greenfield terminal at Gangavaram port on the Andhra coast that will entail an investment of Rs 45 billion, a company statement said.
The terminal, which will provide feedstock to refineries, power and fertilizer plants, will have import capacity of 5 million tonnes per annum (MTPA).
"Petronet LNG Ltd (PLL) and Gangavaram Port Ltd (GPL) today (Wednesday) signed a firm and binding term sheet for developing a land based LNG Terminal at Gangavaram Port, Andhra Pradesh with a capacity of 5 million tonnes per annum," the two firms said in a joint statement.
Petronet LNG Managing Director and Chief Executive Officer A K Balyan and Gangavaram Port Chairman and Managing Director D V S Raju signed the term sheet for the terminal.
The proposed terminal at Gangavaram Port will comprise facilities for receiving, storage and regasification of liquefied natural gas (LNG), and the construction work is expected to be completed in 42 months.
"The construction work on the terminal is expected to start within a year and it shall be ready to commence operations by the year 2016," Balyan said.
Other two greenfield terminals of Petronet are at Dahej in Gujarat and at Kochi in Kerala.
The Kochi Terminal is expected to be ready by July and it will become operational by October, while gas for the terminal will be available from Gorgon, in Australia, by 2015.
The natural gas importer is also planning to increase the capacity of the Dahej terminal from the current 10 million tonnes to 15 million tonnes.
This capacity addition is expected to be commissioned by September 2013, Balyan had said earlier this year.