By RAKESH SHARMA
NEW DELHI -- French power company GDF Suez, GAIL (India)
Ltd. and the southern Indian state of Andhra Pradesh on Tuesday
agreed to set up the South Asian nation's first floating
terminal to import liquefied natural gas.
The terminal, on India's east coast, will have a
capacity of 3.5 million tpy and will likely be commissioned by
the end of 2013.
GDF Suez will hold a 26% stake in the import terminal and
Andhra Pradesh Gas Distribution Corp. will have the remainder,
the companies said in a statement.
The companies didn't give any investment projections for the project.
Andhra Pradesh Gas Distribution is owned jointly by GAIL Gas
Ltd. - a 100% unit of pipeline utility GAIL (India) - and
Andhra Pradesh Gas Infrastructure Corp.
India's annual LNG capacity is estimated to reach 50 million
tons by 2017 from about 13.5 million tons, as local gas
shortages are driving demand for the imported fuel.
A floating LNG terminal is a low-cost solution to imports as
it can be set up quickly - within 18 months compared with about
six years for an land terminal - and also needs lesser capital
investment as it doesn't involve purchase of assets such as
GAIL would source LNG for the terminal from GDF Suez, GAIL
Director Marketing Prabhat Singh told reporters.
The deal reflects GDF's focus on India where it already holds a 10%
stake in Petronet LNG Ltd., the nation's largest LNG importer
Jean-Marie Dauger, executive vice president at GDF, said
that India, "and more generally Asia," is
a core development region for the company's LNG business.
Dow Jones Newswires