Norwegian group, Crown LNG, has initiated an agreement with Indian company, East LNG, to develop an offshore LNG terminal in the Kakinada area, India.

The Indian subsidiary of Crown LNG Holding AS, Crown LNG India AS, signed the agreement, which will see the infrastructure for the LNG terminal at Kakinada financed, built, and provided with a 25-year lease.

The company specialise in building LNG facilities designed for harsh weather conditions, ideal for ensuring structural integrity during the Indian monsoon season.

Gunnar Knutsen, CEO of Crown LNG AS, said, “We will build an LNG terminal that will be operational 365 days per year, including during the monsoon season, for 25 years following the completion of the terminal.”

The terminal is intended to be developed as a gravity-based structure resting on the seabed around 11km offshore.

In addition to dealing with India’s tumultuous monsoon season, the location and structure itself will help to decongest busy ports and ensure that hazardous substances do not contaminate populated areas.

“By choosing this approach, we enable a 365-day operating window without placing unnecessary environmental and safety burdens on the local community in and around Kakinada.”, added Knutsen.

Such a facility is seen as necessary for India’s future when it comes to LNG’s, as eastern India regular sees significant energy shortages.

Some industries affect by the lack of LNG facilities now sit idle due to lack of natural gas supplies.

Jørn Husemoen, Chairman of Crown LNG Holding AS, is confident that the existing pipeline infrastructure is mature and capable of helping supply industries with energy.

He also said, “The Indian government is dedicated to safeguarding the energy supply to domestic industry and consumers, while also facilitating a responsible energy transition.”

“The Kakinada LNG project is proof of this.”

Following an announcement within the coming weeks regarding the project’s EPCIC contractor and subconstractors, the company will work towards a final investment decision (FID) for the end of 2022.

The operational duration of the LNG terminal will be approximately three years after making a FID for the project.