Rel Power, Shell in LNG terminal JV
Reliance Power on Thursday announced that it has tied up with Royal Dutch Shell to set up an LNG (liquefied natural gas) import and re-gassification terminal on India’s east coast.business Updated: May 31, 2012 23:06 IST
Reliance Power on Thursday announced that it has tied up with Royal Dutch Shell to set up an LNG (liquefied natural gas) import and re-gassification terminal on India’s east coast.
“India is an important market for LNG and the states of Gujarat and Andhra Pradesh (AP) have the highest demand for gas in India,” De la Rey Venter, Global Head of LNG, Royal Dutch Shell said in a statement. “After the success of Shell's Hazira terminal in Gujarat, Shell is keen to set up a receiving terminal in AP.”
“We are pleased to have reached an agreement with Reliance Power and Kakinada Seaports to implement the LNG terminal in AP and look forward to successfully progressing this project with our partners,” the statement said.
“The LNG receiving terminal in AP is of strategic importance to Andhra Pradesh and India,” said JP Chalasani, CEO, Reliance Power. “We believe Shell, with its large LNG portfolio and experience in operating LNG terminals will add immense value to the project. Kakinada, with its proximity to our Samalkot power plant and several other gas consumers, is a natural choice for setting up an LNG terminal.”
A statement from Reliance Power said an agreement was signed in December 2011 to undertake a number of joint technical studies and commercial agreements. “With the completion of such studies and agreements, the consortium has finalised the specific location ... adjacent to the existing island breakwater, minimising terrestrial impact,” the statement said.