GAIL to construct RLNG terminal in K-G basin

HYDERABAD: The Gas Authority of India Limited (GAIL) would take steps to establish a Re-gasified Liquefied Natural Gas (RLNG) terminal in the Krishna-Godavari basin in Andhra Pradesh.

GAIL chairman B C Tripathi informed this to state Chief Minister N Kiran Kumar Reddy during their meeting here today.

Initially, an FSRU ( Floating storage, Regas and Unloading) terminal is being planned and subsequently, a land-based terminal will be set up in the state through the Andhra Pradesh Gas Distribution Corporation, the Chief Minister's Office said.

GAIL Gas has a 50 per cent equity in APGDC. The Chief Minister had already written a letter to Union Petroleum Minister S Jaipal Reddy, seeking the establishment of RLNG terminal.

The RLNG terminal in the state is expected to ensure uninterrupted supply of natural gas to industries to fill the shortfall in gas supplies. Besides, a 974-km coastline, AP also has a huge natural gas pipeline infrastructure. Ceramic and glass industries, which have started their projects in the state, are ready to consume RLNG, the CMO release said.

The Petro-Chemical, Petroleum Investment Region that is proposed along the Visakhapatnam-Kakinada corridor, is expected to be one of the major consumers of RLNG.

The Government of Andhra Pradesh has been extending support to establish the LNG terminal by providing technical support, land and other clearances, the CMO release added.