Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Industry / Petrogas to invest Rs3000 crore in Andhra Pradesh
BackBack

Petrogas to invest Rs3000 crore in Andhra Pradesh

The Petrogas facility will initially have a capacity of five million tonnes per annum along with ancillary facilities like floating LNG storage tanks

A file photo of the LNG terminal of the Haldia Dock Complex. Petrogas has joined hands with Krishnapatnam Port and the Andhra Pradesh government to set up an LNG terminal at the Krishnapatnam Port. Photo: BloombergPremium
A file photo of the LNG terminal of the Haldia Dock Complex. Petrogas has joined hands with Krishnapatnam Port and the Andhra Pradesh government to set up an LNG terminal at the Krishnapatnam Port. Photo: Bloomberg

Petrogas Pvt Ltd has joined hands with Krishnapatnam Port Co Ltd and the Andhra Pradesh government to set up a liquefied natural gas (LNG) regasfication and floating storage terminal at Krishnapatnam Port in Nellore district with an investment of around 3,000 crore.

Petrogas is joint venture of Isomeric Holdings bhd of Malaysia and LEPL Venture Pvt Ltd of Vijayawada, the company behind Air Costa Regasification involves converting LNG to natural gas.

The pact was signed at the CII AP partnership summit in Visakhapatnam.

“With a green and clean concept, the government of Andhra Pradesh is encouraged to have Petrogas type of companies to come forward and invest in the state. Under its purview, it will facilitate all possible approvals," said Ajay Jain, principal secretary (energy, investments and infrastructure), Andhra Pradesh.

The Petrogas facility will initially have a capacity of five million tonnes per annum (mtpa) along with ancillary facilities like floating LNG storage tanks. The first phase of this project would cost $500 million.

The investment is likely to create 500 new jobs in the state. The project is estimated to start operations in three years, after which capacity will be raised in the next three years. Andhra Pradesh government will help with land acquisition and infrastructure development by providing incentives.

“To ensure adequate supply of gas for the power and industrial sector of Andhra Pradesh and neighbouring states and to propose a long term solution to address the energy requirements of the state, we are working on a cost-effective and competitive supply of gas," said Krishna Kumar, CEO, power of LEPL Projects Ltd.

In phase two of the project, the company would add another 5 mtpa capacity for regasification and supply gas for industrial and commercial needs of the state.

The project also includes building derivative plants like urea, methanol, ceramic, LPG bottling and other petrochemical plants. It would develop all plants relevant to supplying gas to compressed gas to industrial hubs.

To tap the required funding, the company said it is in talks with banks like Deustche Bank, ICICI Bank and BNP Paribas.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 12 Jan 2016, 12:52 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App