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PIL, which is owned by Brookfield Asset Management-backed India Infrastructure Trust, said in a social media post that its managing director Akhil Mehrotra signed the MoU with Swapan Kataria, CEO of Crown LNG, on July 10.
The duo agreed to establish connectivity between Crown LNG’s proposed 7.2 mtpa gravity-based structure and regasification unit at Kakinada and PIL’s pipeline, subject to satisfaction of various terms and conditions.
Moreover, PIL said the tie-in connectivity will provide Crown LNG with an evacuation solution from its regasification unit located in close proximity to its injection point at Kakinada, ensuring efficient delivery of natural gas to key demand centres across India.
“This tie-in connectivity will facilitate evacuation of circa 25 mmscmd of gas from the terminal through the PIL pipeline providing Crown LNG and its customers access to the western and the northern gas markets,” it said.
2026
According to PIL, Crown LNG plans to begin construction of the terminal in 2026.
PIL said Crown LNG is currently in the process of finalizing contracts with key suppliers, while the frim expetcs to complete the faciltiy within four years from the date of this MoU.
Crown LNG operates in India through its wholly owned subsidiary Krishna Godavari LNG Terminal.
“The parties will work closely to align the pipeline connectivity with the project’s development timeline, enabling synchronized execution and operational readiness,” PIL said.
$1 billion
In November year, Crown LNG completed the acquisition of all shares of KGLNG, which owns the operating license for the company’s planned LNG import terminal in Kakinada.
Earlier this year, Crown LNG signed a memorandum of understanding with the Indian Gas Exchange (IGX) to cooperate on LNG sales to downstream customers from its Kakinada LNG import terminal.
Crown LNG expects the project to cost about $1 billion.
Worth mentioning here, in July 2024, Crown LNG and Catcha Investment completed their deal for a business combination.
This combination resulted in Crown LNG becoming a US publicly listed company.