Krishnapatnam might replace Kakinada as LNG terminal

Vol 8, PW 1 (07 Apr 04) News in Brief

BP, Petronas and Indian Oil are shortly expected to confirm a new location for the 2.5m t/y Kakinada LNG import project, which they jointly promote.

When they meet on 8th April to decide a new location, the Kakinada promoters will examine the recommendations of an alternate location study from consultants Tractebel. Kakinada is less attractive because of the threat from Reliance, which has chosen the port to land gas from its offshore KG block.

A hot favourite is the private Krishnapatnam port, some 400-km south, also in Andhra Pradesh. We are certainly going ahead with the project, says a source.

The April meeting is only to decide on the shift of location. IOC has already signed a MoU for the project with Krishnapatnam port, which if agreed, would allow the consortium to target the industrial hinterland of Tamil Nadu and the state capital Chennai, which is 180-km south.