Crown LNG awards FEED contract to develop Kakinada LNG terminal

The offshore LNG receiving terminal will be located offshore approximately 19 kilometres north-east of Kakinada on India’s east coast.

Crown LNG awards FEED contract to develop Kakinada LNG terminal

Crown LNG, a Norwegian group which specialises in developing LNG infrastructure for harsh weather conditions, has entered into an agreement with Aker Solutions as the main contractor to deliver a gravity-based structure (GBS) in concrete for Crown’s offshore LNG terminal at Kakinada, India.

Further, SiemensEnergy and Wärtsilä Gas Solutions have been assigned as key subcontractors to Aker Solutions for the project. Siemens Energy will develop the power generation and distribution system as well as the platform control system,while Wärtsilä will develop the re-gasification system for the LNG terminal.

Under the agreement, Aker Solutions and key subcontractors will first conduct the front-end engineering and design for the LNG terminal. Upon final investment decision, Aker Solutions will take on the role as EPCIC contractor for the project.  

GunnarKnutsen, CEO of Crown LNG AS, which is Crown LNG’s project services company, says:

“This LNG terminal will be based in a location exposed to monsoon seasons, which requires partners with the best track record from harsh environment projects. This is why we have engaged Aker Solutions, Siemens Energy and Wärtsilä.”

Crown LNG has an exclusive agreement to finance, build and lease to its client KGLNG, a subsidiary of East LNG. KGLNG is the company that has the license to establish the LNG receiving terminal at Kakinada while East LNG is the holding company that owns KGLNG. Crown LNG has also been contracted for operations and management of the facility, through the 25-year lease period.

The offshore LNG receiving terminal which will be located offshore approximately 19 kilometres north-east of Kakinada on India’s east coast, approximately 11 km from the shoreline.

Crown LNG has opted to develop the LNG terminal as a gravity-based concrete structure that sits on the seabed. This solution will be able to withstand the harsh weather conditions the Indian monsoon season presents, which enables a 365-day operating window for the terminal. KGLNG’s license has recently been updated to reflect Crown LNG’s solution and 365-days operational window.

Under the agreement, Aker Solutions will be overall responsible for technical development and execution of the project. This includes the GBS itself as well as all topsides facilities that are not delivered by Wärtsilä and Siemens Energy. AkerSolutions will also be responsible for construction, including identifying a construction yard in India where construction of the GBS will take place, plus installation and hook-up the topsides process and utilities.

Aker Solutions has designed and built concrete GBSs in rough North Sea and Artic watersfor the past four decades and has also delivered the world’s first LNG offshore terminal in concrete, the Adriatic LNG Terminal.

The LNG terminal will be built with an annual re-gasification capacity of 7.2 million metric tonnes per year. Wärtsilä will, as a subcontractor to Aker Solutions, be responsible for the regasification system, including the boil-off handling and fuel gas systems. Wärtsilä has delivered similar regasification systems for more than 20 floating storage regasification units (FSRUs) all over the world.

Another key subcontractor on the project is Siemens Energy, which offers products and solutions for power generation and distribution onshore and offshore.

Siemens Energy will deliver power generation and electrical distribution system onboard the GBS, including all control systems.