NEW DELHI: Anglo-Dutch energy major Shell and Anil Ambani's Reliance Power on Thursday announced plans to jointly set up a floating facility to import gas in ships off the coast of Kakinada in Andhra Pradesh by 2014. State-run gas utility GAIL too is working on a similar plan with GDF Suez of France. But the Shell-Reliance Power combine could have an advantage as it has also roped in the Kakinada port which could limit GAIL's access to landfall point for connecting its floating facility to Mukesh Ambani's pipeline for transporting gas.
Both Shell and Reliance Power said they would be setting up the project with a capacity to regassify 5 million tonnes of liquid gas (LNG or liquefied natural gas) a year and could be easily ramped up to 10 million tonnes later. The Kakinada LNG terminal would allow Shell to tap into a market created in the wake of supply gap left by declining output from Reliance Industries' field in the Krishna-Godavari basin. For Reliance Power, part-ownership in an LNG facility would ensure fuel supply to its gas-fired power project at Samalkot in the state.
"Kakinada, with its proximity to our Samalkot power plant and several other gas consumers, is a natural choice for setting up an LNG terminal. The LNG receiving terminal in AP is of strategic importance to Andhra Pradesh and India. We believe Shell, with its large LNG portfolio and experience in operating LNG terminals will add immense value to the project," Reliance Power CEO J P Chalasani said. So far, the west coast has been developing as the gateway for gas imports. Besides Shell's terminal, Petronet LNG is running a 10 million tonne facility at Dahej in Gujarat and GAIL is in the process of restarting the 2.5 million tonne terminal of Dabhol power project
Both Shell and Reliance Power said they would be setting up the project with a capacity to regassify 5 million tonnes of liquid gas (LNG or liquefied natural gas) a year and could be easily ramped up to 10 million tonnes later. The Kakinada LNG terminal would allow Shell to tap into a market created in the wake of supply gap left by declining output from Reliance Industries' field in the Krishna-Godavari basin. For Reliance Power, part-ownership in an LNG facility would ensure fuel supply to its gas-fired power project at Samalkot in the state.
"Kakinada, with its proximity to our Samalkot power plant and several other gas consumers, is a natural choice for setting up an LNG terminal. The LNG receiving terminal in AP is of strategic importance to Andhra Pradesh and India. We believe Shell, with its large LNG portfolio and experience in operating LNG terminals will add immense value to the project," Reliance Power CEO J P Chalasani said. So far, the west coast has been developing as the gateway for gas imports. Besides Shell's terminal, Petronet LNG is running a 10 million tonne facility at Dahej in Gujarat and GAIL is in the process of restarting the 2.5 million tonne terminal of Dabhol power project
No comments:
Post a Comment