Atlantic, Gulf and Pacific Company (AG&P) has signed a Memorandum of Understanding (MoU) with Hindustan LNG (HLNG) to build a new LNG import terminal in Andhra Pradesh state in India.

As part of the MoU, AG&P will supply tolled gas to power stations in the East Godavari region of Andhra Pradesh.

The firm will provide an integrated solution to deliver regasified LNG through a new LNG import terminal, which is planned to be built at the port in the state.

AG&P will design and build all the required facilities for the import terminal. These include a floating storage and mooring system, regasification terminal, and related utilities to allow supply of tolled gas to power plants and other users across India’s East Coast.

AG&P chairman Dr Jose Leviste Jr said: “We see the provision of tolled gas to supply power and fuel to factories, homes and even transport in an environmentally clean way as crucial elements of Andhra Pradesh’s future.”

The new terminal is expected to ensure a reliable and low-cost supply to power producers, fertilizer plants, cold storage and other industries, AG&P said.

HLNG chairman Dr C R Prasad said: “Andhra Pradesh is the ideal place for developing an LNG import facility to serve the growing energy demands of the east coast of India where existing gas-fired power projects urgently need a reliable supply of LNG.

“The partnership with AG&P will provide a strong platform to develop a fast-track and low-cost LNG import solution that enables the region to continue on its growth trajectory.”

AG&P will also be responsible for the conversion works as well as operations and maintenance activities.

Image: Illustration of new LNG import terminal in Andhra Pradesh, India. Photo: courtesy of Business Wire.