Kakinada will see some real time LNG momentum picking up soon. The Competition Commission of India (CCI) had confirmed that it has approved the setting up of a jint venture for LNG terminal and trading of LNG at Kakinada. This has been set up by companies APGDC, GAIL, Shell and Engie.
This is also the first joint venture between APGDC (Andhra Pradesh Gas Distribution Corporation), Shell Gas and Engie. In this deal, APGDC, GAIL, GDF SUEZ and Shell will have 48%, 26% and 26 % equity in the project. The second agreement between GAIL, GDF SUEZ and Shell constitutes both the sourcing and the marketing of the regassified LNG from the terminal.
It is also said that the joint ventures have been formed for the incorporation of individual companies to set up a floating LNG import, storage and regasification at Kakinada.
The coming together of these entities holds a potent premise for the LNG terminal in Andhra Pradesh, with GAIL and Shell sporting a broad spectrum international reach as the global players. GAIL is an international giant in the LNG business while Shell ic active in wholesale and downstream supply of natural gas. Engie will come in to offer effective solutions to the individuals, cities and businesses by relying on the diversified gas supply sources.