The state government has short listed Visakhapatnam, Gangavaram and Kakinada ports for setting up the first-ever Liquefied Natural Gas terminal on the east coast. The terminal will be set up in collaboration with the Gas Authority of India Limited, the Central government-owned gas distribution company.

Official sources told this newspaper that the joint venture of the state and GAIL engaged a consultant to make a detailed study of the project and pick one of the three locations.

A senior official said that “In the first stage, a Floating, Storage, Regas and Unloading facility will be set up and in three years the permanent off-shore facility will come up.”

Though the state government initially considered asking Petronet, a joint venture of the central oil companies, to create the facility, chief minister Mr N Kiran Kumar Reddy CM of Andhra Pradesh preferred the state’s participation as well as control over the imported gas and distribution project.

Accordingly, the Chief Minister wrote to Union petroleum minister Mr S Jaipal Reddy to expedite the project. Mr Kiran Kumar Reddy is said to be convinced that the project will address the growing need for gas for power generation, ceramic and glass industries, besides the proposed Petro-Chemical, Petroleum Investment Region.

Sources said Kakinada would be the ideal location, because of its proximity to the originating point of the central gas distribution network criss-crossing the country, presently carrying Reliance gas.

(Sourced from DECCAN CHRONICLE)