GAIL India said its subsidiary GAIL Gas has signed an agreement to set up a INR 5,000 crore liquefied natural gas import facility around Kakinada or Vishakapatnam in Andhra Pradesh.

GAIL in a press statement said that "GAIL Gas, a wholly owned subsidiary of GAIL India, signed a Memorandum of Understanding with the government of Andhra Pradesh for setting up the import facility.

The MoU was signed by GAIL Gas CEO Mr J Wason and Andhra Pradesh Principal Secretary (Investment and Infrastructure) Mr S Bhattacharya.

The statement added that "The Floating Storage and Re gasification Unit (FSRU)/ Liquefied Natural Gas terminal of 3.5 to 5 million tonnes per annum will be set up around Kakinada/Vishakapatnam and is likely to be the first such facility on the east coast of the country with an estimated investment of INR 5,000 crore.”

The proposed facility would supply regassified LNG, a preferred feedstock for power, industrial and other sectors to meet the growing needs of the state.

(Sourced from PTI)