The Indian subsidiary of Norway’s Crown LNG is to build an LNG terminal offshore Kakinada in Andhra Pradesh, India, which will operate year-round, including through the monsoon season.
Crown LNG India has signed a deal to finance, build and lease the infrastructure for East LNG’s receiving terminal, and has also signed a contract for the operations and management of the facility for the 25-year lease period.
The terminal will have an annual regasification capacity of 7.2 million tonnes and will be developed as a gravity-based structure that will sit on the seabed 11 km offshore. The terminal will connect to existing mature pipeline infrastructure in the region. It will contribute to India’s climate targets and help to alleviate energy shortages in eastern India resulting from a lack of LNG facilities. It will supply LNG to fertiliser, petrochemical and power plants in Andhra Pradesh, some of which have been idle due to a lack of LNG supplies.
The structure, based on technology developed by Crown LNG, can operate in more extreme weather conditions than floating structures. As well as being able to operate in the harsh weather conditions of India’s monsoon season, building the terminal offshore will help to reduce the congestion at busy ports, as well as being away from populated areas.
‘By choosing this approach, we enable a 365-day operating window without placing unnecessary environmental and safety burdens on the local community in and around Kakinada. This is in line with our philosophy of acting responsibly wherever in the world we operate,’ says Crown LNG CEO Gunnar Knutsen.
Crown LNG will announce the engineering, procurement, construction and installation (EPCIC) contractors and subcontractors shortly and is working towards a final investment decision (FID) by the end of 2022. It expects the terminal to operational three years after the FID.