The import terminal will have a 3.5 million tonnes per annum capacity using a floating storage and regasification unit.
The feasibility study is to be completed by year end, followed by a final investment decision.
GDF Suez will hold a 26% stake in the terminal with access to equity regasification capacities.
APGDC is a joint venture of state-owned GAIL Gas and Andhra Pradesh Gas Infrastructure.
The LNG terminal is expected to start operations in early 2014.
GDF SUEZ executive vice president in charge of Global Gas & LNG business line Jean-Marie Dauger said the company is pleased to initiate this new partnership in India.
"This agreement is a recognition of GDF SUEZ expertise in LNG projects development," added Dauger.
