The Competition Commission has approved two joint ventures involving GAIL India and Andhra Pradesh Gas Distribution Corporation for setting up a floating LNG terminal at Kakinada in Andhra Pradesh. The JVs are formed for the incorporation of separate companies for setting up a floating LNG import, storage and regasification, among others.

The first JV is between APGDC (Andhra Pradesh Gas Distribution Corporation), GDF SUEZ Energy International Global Development BV, also known as Engie, and Shell Gas. APGDC (a joint venture between the Andhra Pradesh government and GAIL), GDF SUEZ and Shell would have 48 per cent, 26 per cent and 26 per cent equity, respectively, in the project.

The second agreement is between GAIL, GDF SUEZ and Shell and covers both the sourcing of LNG and the marketing of the regassified LNG from the terminal. GAIL, GDF SUEZ and Shell would have 48 per cent, 26 per cent and 26 per cent equity, respectively, in the project.