Petronet LNG Limited and Gangavaram Port Limited sign term sheet for developing LNG Terminal at Gangavaram Port in Andhra Prades

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02 May 2012,Hyderabad

Petronet LNG Limited (PLL) and Gangavaram Port Limited (GPL) today signed a firm and binding term sheet for developing a land based Liquified Natural Gas (LNG) Terminal at Gangavaram Port, Andhra Pradesh with a capacity of 5.0 Million Metric Tonnes Per Annum (MMTPA). Dr. A. K. Balyan, MD & CEO, PLL and Mr. D. V. S. Raju, CMD, GPL signed the term sheet in the presence of Shri Sutirtha Bhattacharya, IAS, Principal Secretary, Infrastructure & Investment Department, Government of Andhra Pradesh.

The LNG Terminal at Gangavaram Port will comprise of facilities for receiving, storage and regasification of LNG and will be developed with an approximate investment of Rs 4500 Crores. This will be the third LNG terminal of PLL, the other two being – an operational 10.0 MMTPA terminal at Dahej, Gujarat and 5.0 MMTPA terminal at Kochi, Kerela which is likely to become operation in next six months. The terminal at Gangavaram Port will have the provision for further expansion like the flag-ship Dahej LNG Terminal of PLL.

The Gangavaram LNG Terminal will help meet the growing energy demand of the State of Andhra Pradesh and will also cater to the increasing gas requirements of eastern and central part of India. At its full operational capacity the terminal is likely to contribute over Rs. 2,000 crores as Value Added Tax ("VAT") to the State Government of Andhra Pradesh.

Speaking on the occasion, Dr. Balyan, MD & CEO, PLL said, "The construction work on the terminal is expected to start within a year and it shall be ready to commence operations by the Year 2016. We are eager to have our presence on the east coast and are exploring various possible options to bring gas earlier than 2016 at Gangavaram Port." Dr. Balyan further added that the Project would contribute immensely to the economic development of the region by providing additional and lower cost alternate fuel to the refinery, power, fertilizer, transport and other sectors, which in turn would result in substantial downstream investments in these sectors.

Mr. D. V. S. Raju, CMD, GPL expressed happiness and said, "This will be not only the first LNG Terminal to come up in the State of Andhra Pradesh but also in the entire East Coast of India. We are very glad to partner with PLL as they have substantial proven expertise in the sector. Developing LNG Terminal at the Port inches us closer to our vision to see Gangavaram Port as truly modern, multi-purpose and environment friendly port." Mr. Raju also said that natural gas is the cleanest hydro-carbon fuel available and the proposed terminal would promote the use of clean energy, thereby contributing to the environment without compromising on industrial & social development.

Mr. Sutirtha Bhattacharya, IAS, appreciated PLL and GPL for coming together for developing this LNG Terminal at Gangavaram Port and expressed confidence that natural gas being one of the primary fuel, it would be a catalyst for exponential growth in the industrial development of the region. He particularly welcomed the thought of bringing natural gas earlier than 2016 in Andhra Pradesh.

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