The LNG (liquefied natural gas) import facility at Karaikal port in Puducherry is likely to commence commercial operations by the fourth quarter of 2021.
Puducherry chief minister V. Narayanaswamy performed the ground-breaking ceremony for the LNG facility, owned and operated by the Singapore-based Atlantic Gulf and Pacific (AG&P), one of the global leaders in running LNG and gas logistics and distribution solutions.
Karaikal LNG will serve the city gas networks of AG&P, and other city gas companies. AG&P has city gas distribution license for Kanchipuram and Ramanathapuram districts of Tamil Nadu.
JM Sigelman, CEO of AG&P said, Karaikal LNG is a cornerstone project for Puducherry, Tamil Nadu and Karnataka that will provide clean and affordable fuel.
LNG will be exported from countries like the US, Oman and Qatar. The gas will be delivered to end customers -- vehicles, kitchens, large and small factories, power, restaurants and malls, he said. “This is part of our $1.5 billion commitment in southern India,” Mr. Sigelman said.
The USD 1.5 billion investment will be made over a decade towards the LNG terminal and city gas distribution network.
Karaikal LNG import terminal will complement Indian Oil’s LNG terminal at Ennore and will provide wider gas accessibility to Puducherry and Tamil Nadu for industrial development.
The re-gasification terminal at Karaikal port is located 4 km away from a tie-in point on GAIL's Narimananan-Kuthalam natural gas pipeline network to provide gas to customers in Tamil Nadu.
The Karaikal LNG import facility is being built on a 12-hectare site within the Karaikal port, 280 km south of Chennai. It will have an initial capacity of 1 million tonnes per annum (mtpa), and increase it to 6 mtpa in a phased manner. The facility will include a floating storage unit, leased through a long-term charter agreement with ADNOC Logistics and Services from 2021.
The LNG terminal will provide natural gas to power plants, industrial and commercial customers within a 300 km radius stretching in to interiors of Tamil Nadu.
Mr. Narayanaswamy said overcoming bureaucratic hurdles, the project has taken off. With large parcels of land available at Puducherry, he urged investors to invest in the Union Territory.
