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Reliance Power and Shell form joint venture for LNG terminal

Oilfield Technology,

Reliance Power and Kakinda Seaports, in conjunction Royal Dutch Shell have formed a joint venture to set up an LNG terminal on India’s Eastern Coast.

The terminal will supply reliquified natural gas to Reliance Power’s 2400 MW Samalkot power plant in the Southern State of Andhra Pradesh and local consumers as well.

Production has been falling in the Krishna-Godavari basin, operated by Reliant Industries. This has left many gas consumers struggling to find supplies elsewhere.

The joint venture plans to build an LNG terminal with an initial capacity of up to 5 million tpy at Kakinda Port in the state of Andhra Pradesh.

"Kakinada, with its proximity to our Samalkot power plant and several other gas consumers, is a natural choice for setting up an LNG terminal. The LNG receiving terminal in AP is of strategic importance to Andhra Pradesh and India. We believe Shell, with its large LNG portfolio and experience in operating LNG terminals will add immense value to the project," Reliance Power CEO J P Chalasani said

Written by Peter Farrell.

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