NGC Energy, Petredec to set up Rs 400-crore LPG terminal

NGC Energy India Pvt Ltd - a joint venture between Oman-based National Gas Company and Singapore-headquartered Petredec - would jointly set up a liquified petroleum gas import and storage terminal at Krishnapatnam Port at an investment of Rs 400 crore. NGC Energy would produce propane, butane at the refrigerated terminal which would have a storage capacity of 30,000 tonnes and a throughput capacity of 1.4 million tonnes per annum, company officials said here.

The foundation stone for the project was laid by NGC Energy chairman Abdulla Suleiman Hameed Al Harthy recently. "The joint venture structure is 60 and 40 percent (with Petredec). Total investments will be Rs 400 crore. We will be commencing construction very soon," NGC Energy India director Nalin Kumar Chandna said.

He said they have set a target of completing the construction in 18 months. "Customers will be from manufacturing industries, glass industry, ceramic industry," he said adding the project would generate around 400 direct and indirect jobs.

"We sincerely thank all the government officials in Andhra Pradesh and Krishnapatnam Port officials for their support," Harthy said. On the joint venture, a company official said National Gas Company signed a definitive agreement to transfer 40 percent of its shares to Petredec in September this year.

India was the world's second-largest consumer and importer of LPG. LPG demand was growing seven percent annually from 24 to 42 MTPA, an official said. China is the largest consumer of LPG.

To a query, an official said the Krishnapatnam Port's strategic location to the hinterland of Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu was the reason to select it for the project.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)