How India's newest LNG import terminal is cutting onshore capex

摘要

Plans by the Indian government to grow the use of natural gas by 150% in the country's energy mix by 2030 will require the construction of new LNG terminal capacity. Already the world's fourth largest importer of LNG behind Japan, China and South Korea, India has five terminals in operation, with 11 others either under construction, in development, or proposed. In February, downstream gas and LNG logistics company Atlantic Gulf and Pacific (AG&P) broke ground on a new LNG import terminal at Karaikal Port, a deepwater port about 280 km south of Chennai on India's east coast. With a target opening of Q4 2021, Karaikal LNG import facility will be owned and operated by AG&P, with an initial capacity of 1 mta, with the possibility of doubling capacity. In close proximity to Tamil Nadu's thriving manufacturing clusters, the new LNG import terminal will provide natural gas to power plants, industrial and commercial customers within a 300 km radius. The region is home to a wide range of industries including agriculture, textiles, steel, cement and manufactured goods, power plants and other processing factories. Karaikal LNG will serve AG&P's city gas networks and other city gas companies that bring compressed natural gas (CNG) and LNG to vehicles and piped natural gas (PNG) to households and businesses. Using truck loading bays at the terminal, AG&P will use its own fleet of tanker trucks to deliver LNG to remote customers.