PLL to take 26% stake in Krishnapatnam LNG terminal

10 September 2019

Petronet LNG Ltd (PLL), the importer of liquefied natural gas (LNG), will take a 26% stake in a planned 1 million tonne (mt) capacity terminal for import and re-gasification of the supercooled fuel. This terminal will be helmed by Bharat Petroleum Corporation Ltd (BPCL) at Krishnapatnam port in Andhra Pradesh’s Nellore district.

Krishnapatnam LNG terminal

BPCL has received the board’s approval for the project, which is estimated to cost some Rs 1,700 crore and is targeted for operations by 2024.

D Rajkumar, Chairman and Managing Director of BPCL said that the project was “first of its kind in India”.

“The uniqueness of this project is that we are not looking at 3 mt or 5 mt or 7.5 mt in the initial stage, but, depending on the demand, we will be scaling up the project. We are starting with 1 mt and go to 3 mt and then to 5 mt depending on the demand so that we don’t land-up in a situation where the utilization of the terminal is very low like unfortunately what is happening with the Kochi LNG terminal,” Rajkumar said.

“We are not looking at a floating storage re-gasification unit (FSRU) or land-based terminal, we are looking at a floating storage unit (FSU) and then regasification on land; this is being used in other parts of the world, so we thought of doing this mainly to reduce project cost in the initial stages,” he added.

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