Gail to set up 4 MTPA floating LNG terminal

NEW DELHI: Gail India will set up India's first 4 million tonne capacity floating liquefied natural gas terminal off the Andhra coast with an investment of about Rs 2,000 crore, oil ministry and company officials said.

The project will be implemented by Andhra Pradesh Gas Distribution Corp, a company jointly promoted by Gail Gas and Andhra Pradesh Gas Infrastructure, which has signed an agreement with GDF Suez LNG UK for jointly setting up a floating storage and regasification unit (FSRU) on Tuesday, Gail said in a statement.

"Gail is expected to deliver the project expeditiously" a petroleum ministry statement said quoting oil minister Jaipal Reddy.

The project would help Andhra Pradesh which is experiencing acute gas scarcity, Reddy said in the statement. The oil ministry expects that the project will be commissioned by the end of 2013.