AP Gas Distribution Corporation, in association with Gas Authority of India and Shell and Engie Global LNG is planning to develop a Floating Storage and Re-gasification Unit (FSRU) based Liquefied Natural Gas (LNG) Terminal project and a dispatch terminal for Kakinada-Srikakulam natural gas pipeline. The proposed LNG terminal will have development of marine facilities for LNG import (island jetty platform), berthing/mooring of FSRU, storage and regasification of LNG with Kakinada deep water port harbour, a high pressure subsea pipeline to transport regasified LNG to coast and an onshore receiving facility for gas metering skid, control room and supply to gas grid. The project is estimated to cost Rs.15000 million. As of July 2016, The state government has handed over 48 acres of land in East Godavari District for establishing the project.