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    AG&P Breaks Ground on India LNG Import Facility


Karaikal LNG will have an initial capacity of 1mn metric tons/year.

by: Shardul Sharma

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AG&P Breaks Ground on India LNG Import Facility

Singapore-based AG&P has broken ground on its LNG import facility at Karaikal Port, Puducherry, India, it said February 20 in a statement. The Karaikal LNG is expected to start commercial operations by Q4 2021.

Owned and operated by AG&P, Karaikal LNG is being built on a 12-hectare site within the Karaikal Port, which enjoys the only deep-water access on the east Coast of India south of Chennai, with all-weather capabilities and 24/7 operations, the company said. Karaikal LNG will have an initial capacity of 1mn metric tons/year and include a floating storage unit (FSU) leased through a long-term charter agreement with Adnoc Logistics and Services (Adnoc L&S) from 2021.

“AG&P takes on the value chain from import of LNG through to delivery of gas to end-customers – vehicles, kitchens, large and small factories, power, restaurants and malls. Karaikal LNG is a cornerstone project for Pondicherry, Tamil Nadu and Karnataka that will provide clean, affordable fuel,” AG&P CEO, JM Sigelman, said.

Strategically located 280km south of Chennai and in close proximity to Tamil Nadu’s manufacturing clusters, the new terminal will provide natural gas to power plants, industrial and commercial customers within a 300 km radius. In addition, Karaikal LNG will serve the important city gas networks of AG&P and other city gas companies that bring CNG and LNG to vehicles and piped natural gas to households and other establishments, AG&P said. Truck loading bays will enable delivery of LNG to remote customers by AG&P’s own fleet of trucks.

“Our goal is to bring down the unit cost of regasification terminals for smaller volumes to make LNG commercially viable for scattered and smaller customers. We will achieve this at Karaikal through the unique solution we are implementing with our partners such as Adnoc L&S,” Karthik Sathyamoorthy, president of AG&P Terminals and Logistics, said.

At Karaikal LNG, AG&P said it has developed a flexible configuration combining floating storage and onshore facilities, such as truck-loading. This design increases operational efficiencies that result in a flexible and commercially-compelling solution for our customers, it said.

Beyond Karaikal, AG&P holds exclusive rights to build city gas distribution networks in 12 geographic areas across the states of Tamil Nadu, Andhra Pradesh, Kerala, Karnataka and Rajasthan.