OIL & GAS

AP Maritime Board to issue comfort letter to H-Energy for Kakinada LNG terminal

The Andhra Pradesh government has granted permission to the State’s maritime board to issue a comfort letter to East Coast Concessions Pvt Ltd promoted by H-Energy for building a ₹1,600 crore LNG receiving and re-gasification terminal at Kakinada Deep Water Port.

The AP government issued an order in this regard on July 8, according to R Karikal Valaven, special chief secretary, AP government. The East Coast Concessions will spend another ₹200 crore for setting up L-CNG stations in the first phase and ₹3,600 crore in the second phase of the project.

The comfort letter was sought by H-Energy to help its subsidiary East Coast Concessions to continue with the LNG project directly with the AP Maritime Board or with the new port operator of Kakinada Deep Water Port in case of cessation of the concession period or termination of the concession agreement signed between the state government and Kakinada Seaports Limited (KSPL) for an initial period of 30 years with two extensions of ten years each which ends in 2049.

H-Energy, the energy unit of Mumbai-based real estate firm Hiranandani Group, has signed a term sheet with Kakinada Seaports Limited – the operator of Kakinada Deep Water Port – to sub lease about 100 acres of land to help build the infrastructure for loading LNG and other regasification activities.

Source
The Hindu businessline
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