H-Energy signs JV for LNG terminal at Kakinada port

New Delhi: Realtor Hiranandani's energy arm, H-Energy on Monday said it has signed agreement to set up a liquefied natural gas (LNG) import terminal at Kakinada port in Andhra Pradesh, its third LNG import facility in the country.

"H-Energy through its wholly-owned subsidiary East Coast Concessions Pvt Ltd (ECPL) and Kakinada Seaports Ltd (KSPL), signed a Port Service Agreement (PSA) on September 6 at Hyderabad," the company said in a statement on Monday.

KSPL has the concession for Kakinada deep water port from Andhra Pradesh government.

"Under the PSA, H-Energy will develop an LNG regasification and reloading terminal at Kakinada port," it said without giving details. It will develop an LNG hub at the Kakinada Port catering to the needs of domestic customers in Andhra Pradesh, H-Energy said.

This facility will act as a transshipment hub. LNG imported at Kakinada would be shipped to H-Energy's upcoming Kukrahati terminal in West Bengal and neighbouring countries like Bangladesh and Myanmar through small LNG vessels.

Darshan Hiranandani, CEO of H-Energy, said: "H-Energy is excited to partner with Kakinada Seaports for our East coast project.

We believe that Kakinada with its existing breakwater and deep draft combined with its close proximity to various natural gas pipeline makes this an efficient and successful project for our customers, our partners, and ourselves".

The PSA along with its associated agreements envisages a long-term association between the two organisations contributing towards India's growth story, especially, the vision of the government to promote a gas-based clean economy.

H-Energy is setting up an LNG terminal at Jaigarh in Maharashtra and also developing a natural gas pipeline of more than 1,000 km, connecting its import facilities to the downstream gas markets.