Atlantic, Gulf and Pacific Company (AG&P) will develop a $200m liquefied natural gas (LNG) import terminal at the Karaikal Port in the Indian territory of Puducherry.

The company has signed an exclusivity agreement with Karaikal Port (KPPL) in this regard. Under the terms, AG&P will also be responsible for the sourcing and supply of LNG.

Upon being commissioned around mid-2019, the new gateway terminal is anticipated to provide wider access to cleaner and cheaper fuel to industries and communities in Puducherry and Tamil Nadu.

AG&P LNG marketing president Karthik Sathyamoorthy said: “AG&P’s innovative approach will establish Karaikal as a major gateway for distributing LNG, CNG and gas quickly and efficiently to customers throughout the region.

“Leveraging its standardized designs and modular approach to building terminals developed in AG&P’s Houston, Texas Engineering Center, AG&P not only eliminates expensive, bespoke engineering costs, but significantly reduces construction time.”

The Karaikal Port, where the new LNG terminal will be built, is a deep-water facility located on the Indian east coast. According to AG&P’s, the new facility is expected to complement Indian Oil’s LNG terminal, being built at Ennore, 300km to the north.

KPPL chairman and promoter director GRK Reddy said: “Karaikal Port is a center of trading for Southeast India and is crucial to the region’s GDP. With the addition of AG&P’s LNG import terminal, Karaikal Port will continue to be an engine of growth for the region’s future.”

AG&P has also reached a deal for the LNG supply with PPN Power, the owner and operator of a 330.5MW gas cum Naphtha-fired combined cycle power plant in Nagapattinam district in Tamil Nadu.

Image: Karaikal Port. Photo: courtesy of KPPL.