Krishna Godavari LNG Terminal, special purpose vehicle of US-based VGS Group Inc is planning to take up development of an offshore LNG floating storage and re-gasification unit at Kakinada Deep Water Port in Andhra Pradesh. As per the project the company will set up offshore LNG floating storage and re-gasification unit (FSRU) in two phases with a handling capacity of 3.60 million tonnes per annum (mtpa) in phase-I and ultimate capacity of 7.20 mtpa in phase-II. The first phase will be commissioned in 1 year after obtaining due clearance and the second phase will be commissioned in 24 months after the commissioning of phase-I.. As of July 2016, the project has received environment clearance.