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Shell Makes Rapid Progress on LNG Terminal Project at Kakinada Deepwater Port

NEW DELHI, MAY 6th 2013: Shell and Kakinada Seaports (KSPL) have achieved two important milestones towards implementing the Andhra LNG import terminal project with the submission of the draft Environmental Impact Assessment report and the signing of the Port Services Agreement.

The draft Environmental Impact Assessment report for the proposed development of the Andhra LNG terminal at the Kakinada deepwater port was recently submitted to the State Pollution Control Board in Kakinada. On the 11th of April 2013, Shell and KSPL signed the Port Services Agreement, setting out the commercial arrangements underlying the development and operation of the required port facilities for the entire duration of the project.

Roger Bounds, Shell Vice President Global LNG said “Shell welcomes the signing of the Port Services Agreement and the imminent public hearing on the site following the submission of the draft EIA. The Kakinada project uniquely benefits from Shell’s presence in several existing and planned LNG supply projects around the world which will help ensure diversity and security of supply to the State of Andhra Pradesh”.

Dr Yasmine Hilton, Chairman of Shell Companies in India said, “India is an important market for LNG and the states of Gujarat and Andhra Pradesh (AP) are key markets for gas in India. After the success of Shell’s Hazira terminal on the west coast in Gujarat, Shell is keen to set up an LNG receiving terminal on the East coast in AP. We are delighted with the rapid progress we have made and we look forward to successfully implementing the first Floating and Storage Regasification Unit (FSRU) in India with our partners”.

The project, which was conceived by Shell and its partners in 2011, is now rapidly advancing to fruition. The technical scope development and associated execution plan is nearing its completion. The project is progressing as per plan and is on track to potentially becoming the first LNG import terminal on the East Coast.  The terminal will start with a capacity of up to 5 million tons per annum (mtpa) and is designed for easy expandability to 10+ mtpa to meet the surging demand for gas in the region.  

Shell with its global experience in project delivery and its specific experience in LNG and LNG regasification and FSRU projects is ideally placed to successfully, efficiently and timely deliver this important project for Andhra Pradesh.

Shell has since established the project company by the name of Andhra LNG Pvt Ltd as the venture to develop, implement and operate the LNG import and regasification terminal.

Dr Sander Stegenga, senior Shell LNG manager and Andhra LNG Pvt Ltd Chief Executive Officer, said “The signing of the PSA with KSPL and submission of the EIA report mark important milestones in the development of the project, and brings Shell and KSPL a step closer to delivering the much needed gas supply to Andhra Pradesh and contributing towards the development of gas driven economic growth in the State”.

The potential establishment of the LNG import and regasification terminal at the Kakinada Deepwater port in Andhra Pradesh would represent the next significant Foreign Direct Investment for Shell in the country and Andhra Pradesh.

 

ENDS

For further information please contact

Communications Dept. Shell India Markets Pvt Ltd

Rahul Sharma at rahul.r.sharma@shell.com

Gurmeet Kaur at gurmeet.kaur@shell.com

Shell Media Relations APAC team

Cindy Lopez at cindy.lopez@shell.com

Serene Loo at serene.loo@shell.com

Mich Villar at mich.villar@shell.com

NOTE TO EDITORS

Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this media release “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them.

These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this media release refer to companies over which Royal Dutch Shell plc  either directly or indirectly has control. Companies over which Shell has joint control are generally referred to “joint ventures” and companies over which Shell has significant influence but neither control nor joint control are referred to as “associates”.

In this media release, joint ventures and associates may also be referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect (for example, through our 23% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This media release contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements.

Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements.

Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions.

These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases.

There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this media release, including (without limitation):

(a) price fluctuations in crude oil and natural gas;

(b) changes in demand for Shell’s products;

(c) currency fluctuations;

(d) drilling and production results;

(e) reserves estimates;

(f) loss of market share and industry competition;

(g) environmental and physical risks;

(h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions;

(i) the risk of doing business in developing countries and countries subject to international sanctions;

(j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change;

(k) economic and financial market conditions in various countries and regions;

(l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and

(m) changes in trading conditions. All forward-looking statements contained in this media release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements.

Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2012 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this media release and should be considered by the reader.  Each forward-looking statement speaks only as of the date of this media release, May 3 2013. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information.

In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this media release.

We may have used certain terms, such as resources, in this media release that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC.  U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.

 

About Shell

Shell is a global leader in LNG and helped pioneer the liquefied natural gas (LNG) sector, providing the technology for the world's first commercial liquefaction plant in 1964. Shell is a participant in eight operating LNG projects in operation with some 21 million tonnes per annum (mtpa) operational LNG capacity, in seven countries, with another ready for start up and three new projects under construction and 15 mtpa of LNG options.

Shell was a partner in the first-ever purpose built LNG carrier and has been delivering LNG safely for nearly half a century. Today Shell is the world’s largest LNG shipping operator, with interests in around a quarter of the LNG vessels in operation.

Shell is the majority shareholder and operator of the Hazira terminal in Gujarat, and has recently supported the development of a similar FSRU based terminal in Dubai.

 

About Kakinada Sea Ports Limited

Kakinada Sea Ports Limited (KSPL) operates the Kakinada Deep Water Port in Andhra Pradesh East Coast India. It was the first operational privatized port on the East Coast. The vantagious position of the Port allows it to handle a unique mix of bulk, liquid, break bulk, containers, project cargoes & service offshore Oil & Gas exploration activities of Krishna – Godavari Basin. KSPL is truly committed to Customer needs, safe working practices, supply chain management and environment protection.

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