Krishnapatnam replaces Kakinada for LNG terminal

Vol 8, PW 3 (05 May 04) News in Brief

As we predicted in an earlier issue of PETROWATCH, the promoters of a 2.5m t/y LNG import project in Andhra Pradesh have formally replaced Kakinada with Krishnapatnam as the new location for project construction.

We learn the consortium of Indian Oil, BP, Petronas, and Singapore-based Coconada Sea Ports chose Krishnapatnam on 8th April following a recommendation from Tractebel of Belgium. Krishnapatnam is a private port located 400-km south of Kakinada.

Tractebel tells us Krishnapatnam is better than Kakinada, says a source. The sea off Krishnapatnam is calmer than off Kakinada and it has a deeper draft than Kakinada.

This means less dredging. Krishnapatnam lies within easy reach of potential customers in the car making, machine tool and steel industries in the south Indian hinterland.

Krishnapatnam is just 100-km north of Chennai and just 300-km east of Bangalore, he adds. It is also close to Salem.