Petronet LNG is planning to set up a floating liqeified petroleum gas (LNG) terminal in Andaman and Nicobar Islands that will be utilised to feed city gas distribution business of selling compressed natural gas (CNG) to automobiles and piped cooking gas to households in the island.

Petronet LNG has made an application to sector regulator Petroleum and Natural Gas Regulatory Board for a city gas licence. In its application Petronet LNG has stated that NTPC Vidyut Vyapar Nigam is looking at setting up 50 MW gas-based power plant in Hope Town in South Andaman and Nicobar Islands and plans to appoint a gas supplier for the same.

Petronet LNG has proposed to set up a Floating Storage Regasification Unit (FSRU) to regasify LNG to supply gas to the power plant. This will also be the source for the supply of gas to city gas distribution network at Port Blair.

The company currently operates 15 million tpa LNG import terminal at Dahej in Gujarat and has another five million tpa unit at Kochi in Kerala.