AG&P signs MoU with Hindustan LNG to build LNG import terminal in Andhra Pradesh, India


Atlantic, Gulf and Pacific Company (AG&P) and India-based LNG import terminal development company Hindustan LNG (HLNG) have signed a memorandum of understanding (MoU) to supply tolled gas to power stations in the East Godavari region of Andhra Pradesh, India.

As per the agreement, AG&P, a global integrator of LNG infrastructure solutions such as LNG terminals and the supply chains, will provide an integrated solution to deliver regasified LNG through a new LNG import terminal, which AG&P will also design and build at the port in the state of Andhra Pradesh.

The MoU has commenced a completely integrated solution for delivering tolled gas in India, including design, construction, financing, operations and maintenance of the new terminal.

This solution will ensure a reliable and low-cost supply to power producers, fertiliser plants, cold storage and other industries in the state and other markets along the east coast.

HLNG chairman Dr CR. Prasad said: “Andhra Pradesh is the ideal place for developing an LNG import facility to serve the growing energy demands of the east coast of India where existing gas-fired power projects urgently need a reliable supply of LNG.

“The partnership with AG&P will provide a strong platform to develop a fast-track and low-cost LNG import solution that enables the region to continue on its growth trajectory.”

"The partnership with AG&P will provide a strong platform to develop a fast-track and low-cost LNG import solution that enables the region to continue on its growth trajectory."

Under the agreement, AG&P will be responsible for designing and building all the required facilities for the import terminal, including a floating storage and mooring system, regasification terminal, related utilities and the provision of tolled gas to power plants and other users.

Furthermore, it will conduct any requisite conversion works and, upon commissioning, ongoing operations and maintenance activities.

AG&P chairman Dr Jose P. Leviste, Jr said: “It is a great privilege for AG&P to help implement India’s vision for clean, low-cost, flexible and reliable power. Andhra Pradesh is playing a critical role in manufacturing and trade. The state and its people are on a strong, upward trajectory.

“We see the provision of tolled gas to supply power and fuel to factories, homes and even transport in an environmentally clean way as crucial elements of Andhra Pradesh’s future. We are honoured to be a part of this exciting phase of the state’s development.”


Image: AG&P to build LNG import terminal in India. Photo: courtesy of Business Wire / AG&P.