The Competition Commission has approved two joint ventures involving GAIL India and Andhra Pradesh Gas Distribution Corporation for setting up a floating LNG terminal in Andhra Pradesh.
In a tweet, the Competition Commission of India (CCI) said it has approved “setting up of a joint venture for LNG terminal and trading of LNG at Kakinada by APGDC, GAIL, Shell and Engie”.
The first JV is between APGDC (Andhra Pradesh Gas Distribution Corporation), GDF SUEZ Energy International Global Development BV, also known as Engie, and Shell Gas.
APGDC, a joint venture between the Andhra Pradesh government and GAIL, GDF SUEZ and Shell would have 48 per cent, 26 per cent and 26 per cent equity, respectively, in the project.
The second agreement is between GAIL, GDF SUEZ and Shell and covers both the sourcing of LNG and the marketing of the regassified LNG from the terminal. GAIL, GDF SUEZ and Shell would have 48 per cent, 26 per cent and 26 per cent equity, respectively, in the project.
The JVs are formed for the incorporation of separate companies for setting up a floating LNG import, storage and regasification, among others, at Kakinada, Andhra Pradesh.
The two agreements were signed by the companies in September last year.
GAIL is a leading marketer and transporter of natural gas and is an international player in LNG business whereas APGDC was incorporated primarily to create gas infrastructure in Andhra Pradesh.
In India, Shell is active in wholesale and downstream supply of natural gas. The Engie group provides efficient solutions to individuals, cities and businesses by relying on diversified gas supply sources, among others.
