Two joint ventures involving GAIL India and Andhra Pradesh Gas Distribution Corporation to set up a floating LNG terminal in Andhra Pradesh has been approved by the Competition Commission of India.

The Competition Commission of India (CCI) said that 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 aimd APGDC (Andhra Pradesh Gas Distribution Corporation), GDF SUEZ Energy International Global Development BV, also known as Engie, and Shell Gas.

Whereas the second agreement involves 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 percent, 26 percent and 26 percent equity, respectively, in the project.

The purpose of forming these JVs is to incorporate separate companies for setting up a floating LNG import, storage and regasification, among others, at Kakinada, Andhra Pradesh.

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