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Karaikal Portís proposed LNG terminal to be operational by mid-2019

The stage is set for commissioning of the first phase of the Liquified Natural Gas Terminal at Karaikal Port in Central Tamil Nadu's coast to handle one million tons of LNG in another eighteen months. The capacity of the offshore LNG terminal at the Port is expected to be doubled in the second phase of the project to be taken up in 2019.

AG&P (Atlantic, Gulf and Pacific Co.), the Philippines-based company at the forefront of providing end-to-end LNG delivery solutions, has signed an exclusive agreement with Karaikal Port Pvt. Ltd (KPPL), to develop an LNG import terminal at the port, including LNG sourcing and supply.

Work on the offshore LNG terminal at Karaikal port had commenced nearly two years ago. With source and supply being ensured for the proposed LNG terminal, it is now only a question of time that the project is implemented

Karaikal Port is a centre of trading for South-East India and is crucial to the regionís GDP. With the addition of AG&Pís LNG import terminal, Karaikal Port will continue to be an engine of growth for the regionís future.

Offering an all-weather operation with a breakwater ensuring 99 per cent availability, night navigation, limited dredging requirements, proximity to GAILís existing Cauvery Basin gas pipeline network and 24/7 access to port services, we are immensely proud of the portís facilities that attracted AG&P to this prime site," said Mr GRK Reddy, Chairman and Promoter Director of KPPL.

The development of AG&Pís LNG import terminal at Karaikal Port shall complement Indian Oilís under-construction LNG terminal at Ennore 300 km to the north and will provide wider gas accessibility to Puducherry and Tamil Nadu. The Indian OIl's LNG terminal is expected to be commissioned next year will handle five million tonnes of LNG in the first phase. IOC has plans to expand the terminal by another five million tons.

The LNG terminal at Karaikal port will serve the heavily industrialised region of central Tamil Nadu which has major manufacturing clusters for the fertiliser, cement, steel, textile, leather, sugar and garment industries located within its 300 km catchment area. In addition, it will serve the gas-fired power industry as well as multiple demand centres via pipeline and/or city gas distribution network, said a release.

"AG and P will bring clean fuel to customers who do not have access today. The company is honoured to be working with Karaikal Port Private Limited to deliver this major infrastructure project to South India," said the spokesman of, AG and P.

"AG&Pís 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 standardised designs and modular approach to building terminals developed in AG&Pís 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," said a spokesman of AG and P.

The Karaikal Port is a deep-water facility located on the east coast of India. Since commencing operations in 2009, it has handled over 46 million tonnes of multi-cargo and received over 1,400 commercial vessels. As part of the portís expansion beyond commercial cargo, it allocated an area within existing breakwater to develop an LNG terminal to serve the power, industrial and other customers in the region. The Port received Environmental Approval (EA) for this LNG terminal development in May 2017, the release said.


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