GDF SUEZ has been selected by Andhra Pradesh Gas Distribution Corporation (APGDC), as strategic partner for the development of a floating liquefied natural gas (LNG) import terminal project, on the East coast of India.
A feasibility study has been launched and will be completed by the end 2012, followed by a Final Investment Decision (FID). The commissioning date is expected in early 2014. This fast track solution will provide Andhra Pradesh with LNG to support its growth (CAGR of 7.4% over the period 2005-2010) one of the strongest among all Indian states.
The import terminal would have a 3.5mtpa envisaged capacity using a Floating Storage and Regasification Unit (FSRU). GDF SUEZ would have a 26% stake in the import terminal, with an access to equity regasification capacities. The expertise of the GDF SUEZ Group in LNG import projects development will be mobilized in the study and after FID if it is granted.
APGDC is a JV between GAIL GAS (a 100% subsidiary of GAIL (India) Ltd) and APGIC (Andhra-Pradesh Gas Infrastructure Corporation). Gail is the largest gas transport and marketing company in India.
Jean-Marie Dauger, Executive Vice President GDF SUEZ, in charge of Global Gas & LNG business line said: “We are delighted to initiate this new partnership in India. This agreement is a recognition of GDF SUEZ expertise in LNG projects development. With a 10% stake in Petronet LNG Limited and a medium term LNG sales agreement signed in 2011, GDF SUEZ confirms that India, and more generally Asia, as a core development region for its LNG business”.