LNG Bharat claims Krishnapatnam on track

Vol 19, PW 10 (28 Jan 16) Midstream & Downstream
     

KEI-RSOS, promoter of the proposed 5m t/y Floating LNG Storage Unit (FSU) at Krishnapatnam in Andhra Pradesh, claims its project is on track for construction work to begin in March.

“We expect environment ministry clearance in February,” says a company source. “The public hearing took place on December 22 and we’ve uploaded the report to the environment ministry website.

” KEI-RSOS subsidiary LNG Bharat is also expecting to receive a Detailed Feasibility Report (DFR) and financial viability report from merchant banker IDBI capital by February 10. And our company source boldly asserts that by end-February the company will farm out 26% to a strategic partner: either a consortium of Mitsui and Tokyo Gas or a consortium of Chinese companies.

“A Mitsui team met us in Rajahmundry on January 19 to continue the stake sale discussions,” we hear. “We want to conclude them by end-February.

” LNG Bharat is also in talks with potential EPC contractors, but declined to share names. More, Project Management Consultant INOX is reworking the project design based on suggestions from IDBI Capital.

“Our earlier plan was to have only cryogenic trucks carrying LNG to customers with small regasification units at their premises (in Phase-I),” we hear. Now it plans to also set up a 30,000 cubic metre capacity onshore LNG storage tank and a 2m t/y regasification facility in Phase-I in addition to the 130,000 cubic metre capacity FSU.