Crown LNG Holding AS has begun development of a 7.2-million tonne/year gravity-based LNG terminal 11 km offshore Kakinada, India, with subsidiary Crown LNG India AS agreeing with East LNG to finance, build, and lease the terminal. Crown will also operate the plant for its 25-year lease period.
The company said it expects to award the project’s engineering, procurement, construction, installation, and commissioning contract and key subcontracts in the coming weeks. It plans to make a final investment decision by end-2022 and to place the terminal in service 3 years later.
The lack of LNG terminals on India’s east coast has caused significant energy shortages for the eastern part of India, according to Crown, especially for high-volume energy users such as the fertilizer, petrochemicals, and power plants in and around Andhra Pradesh.
Crown also noted that pipeline infrastructure near the project site is mature and therefore easy to connect to, easing development.
