Reliance Power plans LNG terminal for gas-fired plant

Reliance Power is in talks with Shell to jointly set up a LNG terminal to secure supplies for its gas-fired power plant.

The proposed venture will likely invest $564.92 million to set up an LNG terminal at Kakinada on India's east coast and would import and supply gas initially to Reliance Power's 2400-megawatt, gas-fired plant in Andhra Pradesh, slated to come onstream in 2012, the source said.

"Reliance Power keeps exploring various business opportunities. The company would not like to comment on specific business proposal," the utility said in an e-mail response to Reuters.

The two companies will hold equal stake in the joint venture, with Kakinada port in the southern Andhra Pradesh state owning a minority stake.