Pipeline Infrastructure, Crown LNG sign MoU for pipeline connectivity at Kakinada

New Delhi, Jul 16 (PTI) Pipeline Infrastructure Ltd (PIL) and Crown LNG Holdings Ltd have signed a Memorandum of Understanding (MoU) to establish pipeline connectivity between Crown LNG's proposed terminal and PIL's existing pipeline network in Kakinada, Andhra Pradesh.

The MoU was signed on July 10 by PIL Managing Director Akhil Mehrotra and Crown LNG Holdings Ltd CEO Swapan Kataria, official sources said.

The MoU is for establishing connectivity between Crown LNG's proposed 7.2 million tonnes a year Gravity-based Structure and Regasification Unit (GBSRU) at Kakinada and the PIL pipeline, subject to satisfaction of various terms and conditions.

PIL is a special-purpose vehicle owned by Energy Infrastructure Trust (InvIT), that owns and operates a nearly 1,400-km pipeline from Kakinada to Baruch in Gujarat. This pipeline is used by companies like Reliance Industries Ltd for transporting natural gas produced from offshore fields to users.

With the latest MoU, the pipeline would also be used by Crown LNG for transporting imported gas.

Sources said this strategic collaboration is expected to enhance the utilisation of the PIL pipeline network through additional gas volumes.

The tie-in connectivity will provide Crown LNG with an evacuation solution from its regasification unit located in close proximity to PIL's injection point at Kakinada, ensuring efficient delivery of natural gas to key demand centres across India.

This tie-in connectivity will facilitate the evacuation of circa 25 million standard cubic meters per day of gas from the terminal through the PIL pipeline, providing Crown LNG and its customers access to the western and northern gas markets.

Crown LNG plans to begin construction of the terminal in 2026 and is currently in the process of finalising contracts with key suppliers. The terminal is expected to be completed within four years from the date of the MoU.

Crown LNG operates in India through its wholly owned subsidiary Krishna Godavari LNG Terminal Pvt Ltd.

Sources said the two sides have agreed to work closely to align the pipeline connectivity with the project's development timeline, enabling synchronised execution and operational readiness. PTI ANZ DR DR