AG&P, a worldwide downstream gasoline and logistics firm, is alternatives to arrange extra LNG terminals in India to fulfill the rising demand for pure gasoline within the nation.
“We’re in negotiations with two or three gamers, however it’s nonetheless not crystallized when it comes to placement. The plan is to search for alternatives on each the east and west coasts,” mentioned Karthik Sathyamoorthy, president of LNG terminals and logistics at AG&P.
Potential investments in greenfield initiatives are estimated to be within $400-$600 million or Rs 32-48 billion. The corporate is already establishing a terminal with a capability of 1 million tonnes each year on the Karaikal port in Puducherry.
AG&P had received metropolis gasoline distribution enterprise licenses in 12 geographical areas through the ninth and tenth public sale rounds of the Petroleum and Pure Fuel Regulatory Board. The licenses have been for Tamil Nadu, Kerala, Andhra Pradesh, Karnataka and Rajasthan.
Nearly all of its 12 geographical places are in southern India and it plans to fulfill the pure gasoline necessities of those places by the Karaikal terminal on the east coast.
The Firm additionally expects LNG provide alternatives from initiatives supplied by the Petroleum and Pure Fuel Regulatory Board throughout numerous auctions as soon as commissioned.
India’s west coast has an extra developed gasoline market with established LNG terminals at Dahej and Hazira in Gujarat, Raigad in Maharashtra and Kochi in Kerala; a number of others are additionally within the pipeline. It is usually effectively related to the nationwide gasoline community and presents robust growth alternatives.
“We’re each superior greenfield and growth initiatives in India,” Sathyamoorthy mentioned.
The upcoming initiatives can have greater capability and scalable as in comparison with the Karaikal Port terminal. “These initiatives are prone to be 2-3 tonnes each year and scalable in comparison with the preliminary 1 MTPA capability of Karaikal Port,” he mentioned.
Work on the Karaikal LNG terminal is in full swing and is prone to be commissioned by FY24. “It would meet the demand for compressed pure gasoline for the automotive phase, piped pure gasoline for residential and LNG for industries in our present geographies,” Sathyamoorthy mentioned.
AG&P has about 200 CNG stations, about 1,000 km of gasoline pipelines and over 50,000 residential prospects throughout geographies, Sathyamoorthy mentioned. It’s at the moment catering to the demand of present suppliers like GAIL Ltd. and gasoline allotted to the CGD gamers by the federal government.
“Going ahead, we can have a mixture of spot and baseload long-term contracts for LNG,” he mentioned.
The loading bays on the Karaikal Port will allow supply of LNG to distant prospects by AG&P’s personal fleet of vans, in accordance with the Karaikal Port web site.
The LNG terminal will embody a floating storage unit leased by a long-term constitution settlement with the logistics and repair division of Abu Dhabi Nationwide Oil Co., which is able to present an environment friendly answer to make the provision of LNG inexpensive, in accordance with the web site.
