AG&P Breaks Ground at Karaikal Port LNG Import Facility

AG&P Breaks Ground at Karaikal Port LNG Import Facility
AG&P breaks ground on its LNG import facility at Karaikal Port, Puducherry. Terminal expected to commence operations by Q4 2021. (Source: Business Wire)

AG&P, a global downstream gas and LNG logistics company, has broken ground on its LNG Import Facility at Karaikal Port, Puducherry, a step in creating broader access to natural gas in South India. The facility is expected to begin commercial operations by Q4 2021.

“AG&P is deeply honored to have the opportunity to bring Karaikal LNG to fast-growing and dynamic Southeast India,” JM Sigelman, CEO of AG&P, said in a statement. “It will become a landmark infrastructure development for the region and is ideally suited for the Karaikal Port, a critical center of trade.”

Owned and operated by AG&P, Karaikal LNG Import Facility is being built on a 12-hectare site within the Karaikal Port, which has the only deep-water access on the East Coast of India south of Chennai. Karaikal LNG, which will have an initial capacity of one million tonnes per annum, will include a Floating Storage Unit (FSU) leased through a long-term agreement with ADNOC Logistics and Services from 2021.

The new terminal will provide gas to power plants, industrial and commercial customers within a 300 km radius. In addition, Karaikal LNG will serve city gas networks of AG&P and other city gas companies that bring CNG and LNG to vehicles and piped natural gas to households and other establishments. Truck loading bays will enable delivery of LNG to remote customers by AG&P’s own fleet of trucks.

Karthik Sathyamoorthy, President of AG&P Terminals and Logistics, said, “With the addition of AG&P’s LNG import terminal, the Karaikal Port will become a gateway for the delivery of cleaner and lower-cost fuel to downstream demand centers that are unable to access natural gas today. Our goal is to bring down the unit cost of regasification terminals for smaller volumes to make LNG commercially viable for scattered and smaller customers. We will achieve this at Karaikal through the unique solution we are implementing with our partners such as ADNOC L&S.”

Abhilesh Gupta, AG&P’s CFO and Chief Commercial Officer, added, “Karaikal LNG will play a crucial role in the GDP of Southeast India. Karaikal LNG is a vital infrastructure project that will help improve the socio-economic conditions of communities within a few hundred-kilometer radius through local employment and the development of industries via reliable and affordable access to natural gas and LNG.”

AG&P provides the infrastructure to access natural gas in new and growing markets. It is an owner and service provider covering the engineering, procurement, project management and construction for onshore and offshore gas infrastructure, linking suppliers to downstream customers.

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