Petronet LNG is planning to construct a mini-liquefied natural gas (LNG) terminal in the Andaman and Nicobar Islands.

Petronet LNG plans to set up a LNG terminal at an investment of Rs 600 crore. Initially, the mini LNG terminal will have 0.5 million tonne capacity. The company is in talks with the Andaman and Nicobar administration for the project. The feasibility study for the project will be conducted soon.

The project is likely to provide connectivity to its upcoming terminals in Kochi and Gangavaram. The produced gas will be transported through small barges.

Meanwhile, the company is likely to commission the Kochi LNG terminal by July 2013. Petronet LNG is setting up a 2.5 million tpa LNG terminal at Kochi in Kerala. The terminal will receive LNG from Rasgas, Qatar and other sources. The project will comprise of LNG storage terminal, re-gasification and captive port facilities. The project is estimated to cost Rs 4,500 crore.