Karaikal LNG terminal to help transform gas-based economy
Singapore-headquartered Atlantic, Gulf & Pacific Company (AG&P) has signed a Memorandum of Understanding (MoU) with the Tamil Nadu Government on 17 Feb 2021 to invest Rs.2,700 crores over the next eight years on the development of City Gas Distribution (CGD) networks to supply reliable, economical, and environment-friendly natural gas across six districts of the state.
AG&P will build CGD networks in districts of Kanchipuram, Chengalpattu, Vellore, Ranipet, Thirupathur and Ramanathapuram.
The State Government is committed to provide support to enable development of the much-awaited CGD infrastructure, that will deliver an uninterrupted supply of PNG to households, commercial and industrial customers, and Compressed Natural Gas (CNG) depots and stations for 24/7 access to CNG for vehicles.
AG&P Pratham’s PNG initiative in Rameshwaram, its natural gas Mother Station in Ramanathapuram along with two CNG stations, are spearheading the development of the State’s city gas infrastructure that will drive socio-economic development as more and more people transition to smarter and cleaner fuels.
Tamil Nadu has tremendous opportunities for growth, development, and innovation in the CGD sector, said PPG Sarma, Managing Director – City Gas Distribution, AG&P.
AG&P’s LNG import terminal in Karaikal (KLNG), strategically located 280 km south of Chennai and in close proximity to Tamil Nadu’s thriving manufacturing clusters, will also be a major contributor to Tamil Nadu’s transformation into a gas-based economy, Sarma elaborated.
“KLNG will not only provide access of natural gas to power plants, and industrial and commercial customers within a 300 km radius of Karaikal, but it will guarantee stable, best priced natural gas supply to the region’s CGD networks including those operated by AG&P Pratham and other CGD companies,” said Sarma.
In 2018, 12 out of 38 districts in Tamil Nadu were awarded licenses by the Petroleum and Natural Gas Regulatory Board (PNGRB) for the development of CGD networks. Of these, AG&P bagged six districts encompassing ~13751 square km, who will be connected to natural gas through 12,000 km of pipeline being laid by the company.
Under the licenses, AG&P will sell natural gas exclusively for eight years and operate its CGD facilities exclusively for 25 years.
By 2028, AG&P will be supplying PNG to 20 lakh households, 10,000 commercial establishments, 150 industrial enterprises such as SIPCOT, SIDCO and Mahindra World City, and will operate more than 200 CNG stations across the state.
AG&P is a global leader in developing and running LNG and gas logistics and distribution solutions.
AG&P Pratham, India, is the City Gas Distribution (CGD) arm of the Singapore-based AG&P Group, a leading downstream LNG and gas logistics company. #eneregy #investment #banking #OPEC #projects #infrastructure /fiinews.com
