AG&P, a Philippines-based company, has signed an exclusivity with Karaikal Port Pvt. Ltd. (KPPL), to develop an LNG import terminal at the Port, including LNG sourcing and supply. AG&P has also executed exclusivity with PPN Power to supply LNG.
AG&P’s LNG import terminal at Karaikal Port will complement Indian Oil’s under construction LNG terminal at Ennore 300 kilometers to the north and will provide wider gas accessibility to Puducherry and Tamil Nadu.
Furthermore, this project is set to serve the gas-fired power industry as well as multiple demand centers via pipeline and/or city gas distribution network.
“Karaikal Port is a center of trading for Southeast India and is crucial to the region’s GDP. With the addition of AG&P’s LNG import terminal, Karaikal Port will continue to be an engine of growth for the region’s future. Offering an all-weather operation with a breakwater ensuring 99% availability, night navigation, limited dredging requirements, proximity to GAIL’s existing Cauvery Basin gas pipeline network and 24/7 access to port services, we are immensely proud of the Port’s facilities that attracted AG&P to this prime site,” said Mr. GRK Reddy, Chairman and Promoter Director of KPPL.
The Karaikal Port, a deep-water facility on the east coast of India, commenced its operations in 2009. Since then he Port has handled over 46 million tonnes of multi-cargo and received over 1,400 commercial vessels.
In order to expand its operation beyond commercial cargos, the Port developed an area within its existing breakwater to develop an LNG terminal to serve power, industrial and other customers in the region, after receiving its Environmental Approval (EA) for this LNG terminal development in May 2017.
Mr. Karthik Sathyamoorthy, President, LNG Marketing, AG&P, noted:“AG&P’s innovative approach will establish Karaikal as a major gateway for distributing LNG, CNG and gas quickly and efficiently to customers throughout the region. Leveraging its standardized designs and modular approach to building terminals developed in AG&P’s Houston, Texas Engineering Center, AG&P not only eliminates expensive, bespoke engineering costs, but significantly reduces construction time. This means the terminal will be up and running by mid-2019.”