Krishnapatnam Port Company Limited (KPC) has announced in an emailed press release that it has signed an agreement with the Government Andhra Pradesh and Petrogas Pvt. Ltd. (Petrogas) to develop a floating liquefied natural gas (LNG) regasification and storage terminal at the eastern Indian port.

Petrogas to Invest in India Floating Storage and Regasification Unit

The "state of the art" floating storage and regasification unit (FSRU) is said to represent a Rs. 3000 crore ($449 million) investment by Petrogas.

KPC says the terminal will have an initial minimum capacity of 5 million tonnes per annum, which will be doubled to 10 million in three years when commercial operations are set to begin.

"The project is ambitious and we are proud to contribute to this opportunity along with our esteemed partners," said Chinta Sasidhar, Managing Director of KPC.

"The infrastructure story of Andhra Pradesh is set on a promising horizon and projects of such scale will only provide significant boost to the country's trade potential apart from creating immense job opportunities."

In December, it was reported that India's government gave approval to a plan that will see vessels operating in the country's inland waterways switch from diesel to LNG bunkers.

In May, A.K.Balyan, Managing Director and CEO, Petronet LNG Ltd (Petronet LNG) said Kochi could become an LNG bunkering hub for not only India, but Southeast Asia as well.