Andhra Pradesh to get an offshore re-gasification unit being built by a Shanghai firm

January 28, 2014

The Shanghai based shipyard Wison offshore and Marine said that, it has received an order for a barge based floating LNG re-gasification unit, which is to be installed off shore Andhra Pradesh. The Indian based Vessel Gasification Solutions (VGS) of New Jersey has entered into an agreement with Wison offshore and Marine of Shanghai for building and supply of the unit for Liquefied Natural Gas (LNG) re-gasification. The proposed floating re-gasification unit (FRU) that is to be installed is proposed to consist of new build, non-propelled barge and this unit is expected to feed the Indian eastern coast market by producing maximum of 1,000 million standard cubic feet of gas every day through re-gasification process.

The facility would be moored on a jetty structure located approximately 8km offshore Andhra Pradesh, to the northeast of the Kakinada Anchorage Port (KAP), and alongside a permanent floating storage unit (FSU) that would be used as the LNG offloading point for trading tankers. The FRU would be adequately sized to allow for the future expansion of the regasification capability by an additional 750 million standard cubic feet per day of gas within the next few years in order to meet the rapidly growing natural gas requirements in the region. Under the agreement, Wison would be responsible for the turnkey engineering, procurement, construction, installation and commissioning (EPCIC) of the unit and would lead the project from its Shanghai operational centre with construction to be performed at Wison’s wholly-owned fabrication facility located in Nantong, China.

“With the execution of this agreement, Wison has allowed VGS to significantly increase the first-mover advantage we have established on India’s East Coast,” said Gaurav Tiwari, President of VGS.

“The FRU will be the integral part of VGS’s plan to meet a significant energy need in the Indian market,” added L Dwayne Breaux, President of Wison Offshore & Marine Ltd in a statement received here.

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