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AG and P hires floating LNG terminal, operations start in Q1

AG&P, the global downstream gas and LNG logistics company, has broken ground on its LNG import facility at Karaikal Port, Puducherry, paving the way to broader access to natural gas as a primary fuel in south.

AG and P hires floating LNG terminal, operations start in Q1
Puducherry CM V Narayanasamy with key officials


The company sees this as part of its $1.5 billion investment commitment in south India, said JM Sigelman, CEO of AG&P. “The opportunity to bring Karaikal LNG to fast-growing and dynamic Southeast India will become a landmark infrastructure development for the region. It is ideally suited for the Karaikal Port, a critical trade hub. 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 Puducherry, TN and Karnataka that will provide clean, affordable fuel,” he said, at the ceremony held in the city.

The Karaikal LNG Import Facility (‘Karaikal LNG’) is expected to commence commercial operations by Q4 2021. Owned and operated by AG&P, the facility 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.

Karaikal LNG, with an initial capacity of one million tonnes per annum (MTPA), will include a Floating Storage Unit (FSU) leased through a long-term charter agreement with ADNOC Logistics and Services (ADNOC L&S) from 2021, providing a solution to enable the supply of this clean fuel to be affordable.

Strategically located 280km south of Chennai and in close proximity to TN’s thriving manufacturing clusters, the new terminal will provide natural gas to power plants, industrial and commercial customers within a 300 km radius, Sigelman said.

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. Truck loading bays will enable delivery of LNG to remote customers by AG&P’s own fleet of trucks.

Karthik Sathyamoorthy, President of AG&P Terminals and Logistics, said, “With the addition of AG&P’s LNG import terminal, the Karaikal Port will become a gateway for the delivery of cleaner and lower-cost fuel to downstream demand centers that are unable to access natural gas today. 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.”

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