AG&P 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 India.
The facility is expected to start commercial operations by the fourth quarter of 2021 and is being built on a 12-hectare site within the Karaikal Port, which is the only port with deep-water access on the east coast of India, south of Chennai. The facility will have an initial capacity of one million tonnes per annum, will include a floating storage unit leased through a long-term charter agreement with ADNOC Logistics and Services from 2021, providing an efficient solution that will enable the supply of this clean fuel to be affordable.
It will provide natural gas to power plants, industrial and commercial customers within a 300 km radius. It will also serve 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 and 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, says: '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 centres 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. We will achieve this at Karaikal through the unique solution we are implementing with our partners such as ADNOC L&S.'