Atlantic, Gulf and Pacific Company (AG&P) and 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.
Under the agreement, AG&P will provide an integrated solution to deliver regasified LNG through a new LNG import terminal that AG&P will also design and build at the port in Andhra Pradesh.
AG&P is a leading global integrator of LNG infrastructure solutions including LNG terminals and the supply chains that emanate from them. HLNG is a Hyderabad-based LNG import terminal development company.
The MoU was signed at the Partnership Summit 2017 organized by Confederation of Indian Industry (CII), and the signing was graced by Chief Minister Shri N. Chandrababu Naidu.
The MoU has launched a fully integrated solution for delivering tolled gas in India, including design, construction, financing, operations and maintenance of the new terminal, which will ensure a reliable and low-cost supply to power producers, fertilizer plants, cold storage and other industries in Andhra Pradesh and other markets along the east coast
Speaking at the signing ceremony in Andhra Pradesh on 28th January, 2017, Dr. C.R. Prasad, Chairman of HLNG 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.”
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.
AG&P will also carry out any necessary conversion works and, upon commissioning, ongoing operations and maintenance activities.
“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,” said Dr. Jose P. Leviste, Jr., Chairman of AG&P.