AG&P, Hindustan LNG sign MoU to build new LNG import terminal in Andhra Pradesh
Jan 30, 2017: AG&P (Atlantic, Gulf and Pacific Company), a global player in LNG solutions, including LNG terminals and supply chain, and Hyderabad-based Hindustan LNG, have inked a deal to supply tolled gas to power stations in East Godavari region of Andhra Pradesh.
Under the agreement, AG&P will provide an integrated solution to deliver regasified LNG through a new LNG import terminal that AG&P will also design and build at the port in Andhra Pradesh.
The MoU was signed at the Partnership Summit 2017 organized by Confederation of Indian Industry (CII), in the presence of Andhra Pradesh Chief Minister N. Chandrababu Naidu. The MoU has launched a fully integrated solution for delivering tolled gas in India, including design, construction, financing, operations and maintenance of the new terminal, which will ensure a reliable and low-cost supply to power producers, fertilizer plants, cold storage and other industries in Andhra Pradesh and other markets along the east coast.
Speaking at the signing ceremony in Andhra Pradesh, Dr. C.R. Prasad, Chairman of HLNG said, “Andhra Pradesh is the ideal place for developing an LNG import facility to serve the growing energy demands of the east coast of India where existing gas-fired power projects urgently need a reliable supply of LNG. The partnership with AG&P will provide a strong platform to develop a fast-track and low-cost LNG import solution that enables the region to continue on its growth trajectory.”
AG&P will be responsible for designing and building all the required facilities for the import terminal, including a floating storage and mooring system, regasification terminal, related utilities and the provision of tolled gas to power plants and other users. AG&P will also carry out any necessary conversion works and, upon commissioning, ongoing operations and maintenance activities.