• Natural Gas News

    Norway's Crown LNG plans LNG terminal in India

Summary

The final investment decision on the 7.2mn metric tons/year LNG terminal offshore India's east coast is expected by the end of next year.

by: Shardul Sharma

Posted in:

Complimentary, NGW News Alert, Natural Gas & LNG News, Asia/Oceania, Liquefied Natural Gas (LNG), Corporate, Exploration & Production, Investments, Infrastructure, News By Country, India, United Kingdom, United States

Norway's Crown LNG plans LNG terminal in India

Norway's Crown LNG Holding has started the process to develop a 7.2mn metric tons/year LNG terminal offshore India's east coast, it said on June 9.

Crown LNG India, a subsidiary of Crown LNG Holding, has signed an agreement with East LNG to finance, build and lease the infrastructure for the offshore LNG receiving terminal at Kakinada in the state of Andhra Pradesh. Crown has also been contracted for operations and management of the facility, through the 25-year lease period.

We will build an LNG terminal that will be operational 365 days per year, including during the monsoon season, for 25 years following the completion of the terminal,” said Gunnar Knutsen, CEO of Crown LNG AS, which is Crown LNG’s project services company.

Crown LNG said it intends to develop the LNG terminal as a gravity-based structure (GBS) that sits on the seabed approximately 11 km offshore Kakinada.

The Indian government is dedicated to safeguarding the energy supply to domestic industry and consumers, while also facilitating a responsible energy transition. The Kakinada LNG project is proof of this,” said Jorn Husemoen, chairman of Crown LNG Holding AS.

Crown LNG expects that the Kakinada project’s engineering, procurement, construction, installation and commissioning contractor and key subcontractors will be announced during the coming weeks. The company is working towards a final investment decision for the end of 2022. The terminal will be operational approximately three years after making a final investment decision for the project, it said.

Meanwhile, Crown LNG has also signed a letter of intent to deliver a traditional 5mn mt/yr floating, storage and re-gasification unit to a gas to power project in the UK. In addition, the company is working on developing a project for a GBS-based liquefaction terminal for the export of gas from the US.