The Indian state cabinet has approved a 5t million per annum LNG project at Gangavaram Port which aims to boost overall capacity to 10t million per annum.
However, Mr N Chandrababu Naidu, chief minister of Andhra Pradesh said that the 5 million tonnes per annum LNG project is not yet finalised despite cabinet approval.
Naidu stated: “The project is expected to generate around US$700 million through VAT for the state and also pave way for creation of many downstream industries.”
He added that the state has decided to include global oil company Shell with 26% equity in the proposed special purpose vehicle (SPV) for setting up a floating storage and re-gasification unit for LNG at Kakinada.
Naidu said that the project will take about four years to commission and two years to advance and complete.