Andhra Pradesh Gas Distribution Corporation (APGDC) has selected French energy firm GDF Suez as the strategic partner to develop floating liquefied natural gas (LNG) import terminal project in India.

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.