With Andhra Pradesh government giving its final nod, it is almost certain that LNG (Liquefied Natural Gas) Terminal will be coming up near Visakhapatnam. Petronet LNG Ltd is coming forward to set up LNG Terminal at Gangavaram Port to which State government has agreed. However, it has refused Gangavaram Port’s proposal to collect the water front charges at the rate of Rs 103.68 per metric tonne of LNG cargo handled from Petronet.
Petronet is a Joint Venture set up by GAIL (India) Ltd ONGC, Indian Oil Corporation Ltd and Bharat Petroleum Corporation Ltd to import LNG and set up LNG terminals in the country with an authorised capital of Rs 1,200 crore (USD 240 million). Gangavaram Port Ltd along with PLL has proposed to construct and operate a 5 MMTPA LNG Terminal with a provision to expand further to 10 MMTPA.
According to a government order issued on Monday, the Gangavaram Port Ltd will submit to the government the Detailed Project Report that was submitted to the lenders for achieving Financial Closure and ensure financial sustainability of the project. This is a crucial decision taken by Mr Chandra Babu Naidu-led AP government.