LNG project yet to take shape
B.V.S. BHASKAR
Vexed promoters threaten to shift to Gujarat or TN
Though the State government has paved the way for execution of two major LNG projects by addressing issues that were holding them back for the last couple of years, it is dillydallying on inviting prospective private investors who were keen on making investments and offer gas at a competitive price.
Chief Minister N. Chandrababu Naidu, during his just-concluded Delhi visit, got an assurance from Union Minister of Petroleum and Natural Gas Dharmendra Pradhan regarding setting up of LNG terminal and floating storage re-gasification unit at Kakinada Deep Water Port (KDWP). However, the second LNG terminal at KDWP by private investors seems to be facing bureaucratic hurdles. According to Gas Authority of India Limited general manager M.V. Iyer, the unit at Kakinada would be operated by a consortium of firms including US-based oil and gas major Shell, GDP-Suez of the UK, GAIL and AP Gas Distribution Corporation.
It will take three to four years for the project to materialise if everything goes well,” he added. He admitted that the procedural wrangles could delay the grounding of the project and hoped both the Central and State governments would address them.
The proposal for the second LNG terminal was submitted to the Chief Minister by Krishna-Godavari LNG Limited consortium members, including VGS Group, Inc, USA, and Exmar of Belgium last month and the CM had promised all support. “The response from the AP government so far has not been encouraging. We will wait for another ten days and may consider going to Gujarat or Tamil Nadu, who are ready to give all clearances,” said Dr. M.V.S.R. Kamesam, Director, KGLNG.
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