(EnergyAsia, January 18 2012, Wednesday) --- India’s state-owned GAIL Gas Limited has signed a memorandum of understanding (MoU) with the Andhra Pradesh state government to develop a 50-billion-rupee floating liquefied natural gas (LNG) terminal off the country’s east coast by 2013. (US$1=51 rupees).

GAIL Gas Limited, a wholly owned subsidiary of GAIL (India) Limited, will operate the proposed FLNG facility off the town of Kakinada which will have the capacity to import between 3.5 million and five million tonnes of LNG a year.

The MoU was signed by GAIL Gas chief executive J. Wason and Andhra Pradesh’s principal secretary for investment and infrastructure S. Bhattacharya. GAIL has begun talks with international investors to help develop the project.

Separately, Royal Dutch Shell and India’s Reliance Power have been reported to be looking to also develop a FLNG terminal off Kakinda to help meet India’s rising energy need to offset declining output at its mature gas field in the D6 block.