Crown LNG begins FEED for Kakinada terminal

Vol 24, PW 16 (01 Jul 21) Midstream, Downstream, Renewables

Norwegian LNG developer Crown LNG is confident it can complete a FEED report for its proposed 7.2m t/y capacity offshore LNG terminal off Kakinada between October and December (2021).

Crown is presently carrying out location water depth studies for the former VGS Cavallo-backed project after completing a pre-FEED; Fugro is carrying out a full FEED for delivery by end-2021. "We are shovel-ready," Shubhankar Chaudhry, Crown's representative in India, tells this report.

"All (environment and local pollution board) clearances are in place; this will be the first of its kind LNG terminal in India using a gravity-based solution; LNG will be stored and processed on a concrete structure on the seabed." Unlike an FSRU, which must be dry-docked during rough weather, explains Chaudhury, the LNG terminal will be a permanent offshore structure.

He adds that FSRU-based LNG projects can only operate up to 225 days in a year, while Crown's permanent offshore LNG terminal will run throughout the year and berth two tankers a week during good weather; LNG send-out can continue from offshore storage tanks through subsea pipelines even if tankers cannot berth during rough weather. Crown argues its terminal can withstand hurricanes and won't sink.

"No (planned FSRU) project on the east coast has gone ahead because of the severe weather, heavy cyclones and monsoon rains," says Chaudhry. "This facility will incorporate LNG storage infrastructure and processing along with a ship-mooring system and a 7.5-km subsea pipeline to evacuate R-LNG to land."

Crown has stepped in to build and operate a project initially conceived in 2013 as a 3.6m t/y Phase-I terminal rising to 7.2m t/y in Phase-II by Krishna Godavari LNG (KGLNG), a joint venture between US-based promoters Vessel Gasification Solutions (VGS) and Cavallo Energy. In an April 12 (2020) presentation, Crown subsidiary Asia First Holdings announced an agreement with KGLNG to design, arrange project finance, own and operate a purpose-built platform providing LNG storage and re-gasification a 30-year day-rate contract.

In December 2019, Crown appointed Kvaerner as its EPCIC contractor; Siemens and Wartsila will provide the technology.