LNG: Full details of 3-phase KEI-RSOS proposal

Vol 18, PW 12 (12 Feb 15) Midstream & Downstream

Rajahmundry-based luxury hotel operator KEI-RSOS is moving ahead with a public hearing to clear its proposed 5m t/y LNG Floating Storage Unit (FSU) at Krishnapatnam in Andhra Pradesh.

A source at KEI-RSOS, which is setting up the FSU through fully-owned subsidiary LNG Bharat, says local authorities will most likely fix a date for the hearing in March. Hopefully all will go well as state chief minister N.

Chandrababu Naidu is a keen project supporter. LNG Bharat received its environment ministry Terms of Reference on May 26, 2014.

Consultant Vimta Labs carried out the Environmental Impact Assessment study and submitted results early this month (February). LNG Bharat has broken up the project into Phase-I, Phase-IA and Phase-II.

Phase-I and IA are together estimated to cost Rs800cr ($129m) and Phase-II will cost Rs1000cr ($161m). In Phase-I, the FSU will be set up with 1m t/y capacity by June 2016.

KEI-RSOS is in talks with two Singapore companies to hire a decommissioned 130,000 cubic metre LNG tanker to use as the FSU. Under Phase-IA, FSU capacity will be expanded to 2m t/y by December 2017.

This Phase will also see a small onshore regasification facility set up by Vadodara-based INOX. In Phase-II, LNG Bharat will set up a 180,000 cubic metre LNG storage tank and expand FSU capacity to 5m t/y by 2019.