Shell Plans $1 bn Investment in India FLNG Terminal

Shell's India unit plans to invest $1 billion in building a floating liquid natural gas (LNG) terminal off the coast of the state of Andhra Pradesh by the year 2014.

Press Trust of India reported that the Anglo Dutch energy firm is building the floating LNG terminal joint venture with Reliance Power. Shell, currently has a 3.6 million tonnes liquefied natural gas (LNG) import facility at Hazira in Gujarat. 

"By end of the quarter, we will be able to import 5 million tonnes at Hazira," Shell India head Yasmine Hilton said. The company is aiming to increase the capacity to 10 million tonnes in 3-4 years while the Kakinada terminal can also be doubled in near future, PTI said. 

Shell sees huge potential for gas imports as demand grows in the energy deficit country. The continuing fall in KG-D6 output has triggered a rush for setting up of LNG import facilities to meet the growing energy demands in the country.