AP govt gives nod to LNG Terminal at Gangavaram Port.

PTI reported that the Andhra Pradesh government has given its nod for setting up the LNG Terminal by Petronet LNG Ltd at Gangavaram Port on the East Coast near Visakhapatnam.

However, it has refused Gangavaram Port's proposal to collect the water front charges at the rate of INR 103.68 per metric tonne of LNG cargo handled from Petronet.

Petronet is a JV set up by GAIL Limited, ONGC, Indian Oil Corporation Limited and Bharat Petroleum Corporation Limited to import LNG and set up LNG terminals in the country with an authorised capital is INR 1,200 crore.

Gangavaram Port Limited along with PLL has proposed to construct and operate a 5 million metric tonne per annum LNG Terminal with a provision to expand further to 10 million metric per tonne.

The JV company will have equity contributions from PLL (76%) Gangavaram Port Limited (8%) and other parties, such as prospective LNG uppliers/buyers or any strategic investor.

However, PLL will be the majority share holder and will have complete management control over the JV Company.

According to a government order issued yesterday the Gangavaram Port Limited will submit to the government the Detailed Project Report that was submitted to the lenders for achieving Financial Closure and ensure financial sustainability of the project.


STEELGURU