Shell exits India LNG import project

NEW DELHI, April 3, 2017 – On Monday, local media quoted the chairman of Shell in India, Nitin Prasad, as saying that the Kakinada floating LNG import terminal project had been halted.

Planned to serve the northeastern state of Andhra Prades, Shell reportedly abandoned the venture due to a lack of sufficient demand. In further comments, Prasad said that engineering work related to the terminal had been completed, and that the project was ready to progress to the next stage.

The floating LNG import terminal had a planned capacity of close to 5 million tonnes per year under phase one. A second phase expansion would have seen capacity increase to 8.94 million tonnes of LNG per year.

Shell had a 26% equity stake in the project and a further 26% share in the joint venture vehicle set up to execute the project. Partners were GAIL and GDF SUEZ.

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