This is expected to make available natural gas to the industrial regions spread over Rayalaseema and southern districts of Andhra Pradesh and Telangana and also in northern areas of Tamil Nadu. This could well be the first LNG import terminal with its own associated natural gas pipeline to be commissioned on the east coast.

The overall project comprises an LNG floating storage, onshore buffer storage tank, regasification and cryo truck loading bays. The terminal will have an LNG berth of its own and also marine logistics support from the port. The public hearing for the project was completed.

Speaking on the future prospects because of this terminal, Mr. G. Venugopal, head of industry relations of the Krishnapatnam Port, said that this was a welcome development with lots of new opportunities for both the port and also the industries in the projected regions.

The project will get cryogenics tech support from INOX CVA, terminal operations support from EXMAR, Belgium and SPT (UK), gas marketing support from ENN, China, and pipeline support from China petroleum pipeline company and other Japanese and Chinese investors.

The LNG terminal is expected to be commissioned by the end of 2017, which will help start the supply of natural gas to the industries coming up in Rayalaseema, Krishnapatnam SEZ, Sri City SEZ, IFFCO SEZ and the industrial estates located in Mambattu, Gummidipoondi and so on.

The terminal is promoted by the Rajahmundry-based KEI-RSOS Petroleum and Energy Ltd jointly owned by Lt. Murthy Jasti of the Riverbay Group and the KEI Group owned by Mr. Anil and Mrs. Shobhana Kamineni of the Apollo Hospitals Group.

This group currently operates 5 marginal gas fields in the KG Basin which produce natural gas in East Godavari District.

Incidentally, another special purpose company Gas Transmission India Ltd. also owned by the same business group has been awarded to lay 250 km Ennore-Nellore-Krishnapatnam-Sullurpeta-Renigunta Natural Gas pipeline with 24 inches diameter by the regulator, PNGRB (petroleum & natural gas regulatory board) through a global bid.

According to Lt. Murthy, the project will comprise a LNG floating storage, onshore buffer storage tank, re-gasification and cryo truck loading bays. “The beauty of the project is that, where there are no pipelines, we can send LNG through tankers and re-gasify at the buyer’s point or LNG stations which are going to be established by us”.

When reporters asked about permissions and investment partners, he said that with the completion of the public hearing, almost all permissions would be in place within two months.

“IDBI Capital is vetting the detailed feasibility and financial viability report of both the projects and the group expects to achieve financial closure within 4 months. In addition, discussions are on with like-minded Chinese and Japanese investors who have approached the group for equity participation in both the special purpose companies which incidentally are in the sectors which permit 100 per cent FDI in automatic route”.