Reliance Power, Shell In JV For LNG Terminal

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[<p>Reliance Power and Kakinada Seaports along with Royal Dutch Shell &nbsp;will jointly set up a liquefied natural gas (LNG) terminal on India's east coast to meet local gas demand, the companies said in a joint statement.<br><br>The terminal will help Reliance Power, controlled by billionaire Anil Ambani, secure fuel supplies for its 2,400 megawatt (MW) gas-fired project at Samalkot in Andhra Pradesh.<br><br>Reliance's plant and another 5,000 MW power project are almost ready in India but can't operate because of a local gas shortage.<br><br>India's gas-based plants are facing uncertainty over supply as output from the D6 block off India's east coast operated by Reliance Industries &nbsp;has sharply declined, forcing power producers to look for substitutes.<br><br>The joint venture company plans to set up an LNG terminal with an initial capacity of up to 5 million tonnes per annum by 2014 at Kakinada deepwater port in Andhra Pradesh, the statement said. Kakinada Seaports operates the Kakinada deepwater port.<br><br>Shell already controlls and operates LNG import terminal in Gujarat.<br><br>The statement didn't disclose the stake of each partner or the proposed investment in setting up the LNG terminal.<br><br>(Reuters)</p>