Crown LNG Signs Gas Sales MOU with India Gas Exchange

Rhea-AI Summary

Crown LNG Holdings (Nasdaq: CGBS) has signed a Memorandum of Understanding (MOU) with India Gas Exchange (IGX) to facilitate LNG sales through Crown's planned import terminal in Kakinada, India. The non-binding agreement establishes a framework for LNG cargoes to be listed and traded on IGX's platform.

The MOU was signed during India Energy Week 2025 by Crown LNG CEO Swapan Kataria and IGX Managing Director Rajesh Kumar Mediratta. Under the agreement, IGX will promote market awareness through workshops and industry engagement, while Crown LNG will coordinate LNG cargo arrivals and sales.

The Kakinada terminal has an approved import capacity of 7.2 MMTPA. Crown expects to reach final investment decision in 2026 with first gas delivery targeted for 2029. This initiative aligns with India's goal to achieve a 15% gas-based economy by 2030.

Positive

• Secured partnership with India's first automated national trading platform
• Approved import capacity of 7.2 MMTPA for Kakinada terminal
• Access to large network of producers, traders, and offtakers in India, world's fourth largest LNG importer

Negative

• MOU is non-binding, presenting execution risk
• Long timeline to first gas delivery (2029)
• Final investment decision still pending (2026)

Insights

Energy Infrastructure Analyst

The MOU between Crown LNG and IGX represents a strategic positioning in India's rapidly evolving LNG market, particularly significant given the country's position as the world's fourth-largest LNG importer. The agreement's importance stems from several key factors:

The planned 7.2 MMTPA Kakinada terminal addresses a critical infrastructure gap along India's eastern coast, where LNG import capacity is currently This positioning could provide Crown with a competitive advantage in serving underserved markets in eastern India, particularly emerging industrial clusters and data centers requiring reliable power supply.

The partnership with IGX, India's first automated gas trading platform, offers Crown several strategic benefits:

• Access to a diverse customer base including producers, traders, and end-users
• Reduced counterparty risk through IGX's clearing mechanism
• Enhanced price discovery and market transparency
• Streamlined trading and settlement processes

However, several critical factors warrant attention:

• The non-binding nature of the MOU means execution risks remain
• The 2029 timeline for first gas indicates a lengthy development period, during which market dynamics could shift
• Final investment decision in 2026 suggests significant capital requirements ahead

The project's alignment with India's national goal of achieving a 15% gas-based economy by 2030 provides favorable policy tailwinds. The focus on serving data centers and industrial customers indicates potential for stable, long-term demand, though success will depend on competitive pricing and reliable operations.

LONDON, Feb. 18, 2025 (GLOBE NEWSWIRE) -- Crown LNG Holdings Limited (Nasdaq: CGBS) (“Crown” or “Crown LNG”), a leading provider of LNG liquefaction and regasification terminal technologies for harsh weather locations, announced today the execution of a Memorandum of Understanding (MOU) with the India Gas Exchange Ltd. (“IGX”), India’s first automated national level trading platform. The MOU outlines how Crown and IGX plan to cooperate on liquefied natural gas (“LNG”) sales to pipeline customers downstream from Crown’s planned LNG import terminal in Kakinada, India.

The signing ceremony on the sidelines of India Energy Week 2025 in New Delhi included Swapan Kataria, CEO of Crown LNG, and Rajesh Kumar Mediratta, Managing Director & CEO of IGX, and was witnessed by The Honorable Member of Parliament from Kakinada Shri Tangella Uday Srinivas, an advocate for building infrastructure to empower millions of households and to improve the development of new industries in Andhra Pradesh, including data centers requiring uninterrupted 24/7 power supply.

The non-binding MOU provides a framework for LNG cargoes traveling through Crown’s regasification terminal to be listed, marketed, and sold on the IGX. Under the agreement, IGX will drive market awareness through workshops and industry engagement initiatives, encouraging wider participation in gas trading. Crown LNG will collaborate closely with IGX on LNG cargo arrivals and sales, ensuring a stable and efficient supply chain. Together, they aim to unlock new opportunities in India’s energy sector and reinforce the role of natural gas as a key driver of sustainable economic growth. Both organizations will explore further areas of cooperation to accelerate India’s 15% gas-based economy target by 2030, as envisioned by Prime Minister Narendra Modi.

“This collaboration will offer Crown a unique position to sell gas to a large base of producers, traders, and offtakers throughout India," said Swapan Kataria, Crown LNG CEO. "We believe this agreement is the first of several that will address the lack of supply for the eastern coast of the fourth largest LNG importer in the world. Together with IGX and our growing network of trusted local partners, we are excited to strengthen India’s energy security and to help make natural gas more accessible to industries and micro-enterprises across India.”

The Kakinada terminal has received an approved total import capacity of 7.2 MMTPA. Crown expects to achieve final investment decision for the project in 2026 and to deliver first gas in 2029.

About Crown LNG Holdings Limited
Crown LNG is a leading provider of offshore LNG liquefaction and regasification terminal infrastructure solutions for harsh weather locations, which represent a significant addressable market for bottom-fixed, gravity based (“GBS”) liquefaction and floating storage regasification units, as well as associated green and blue hydrogen, ammonia and power projects. Through this approach, Crown aims to provide lower carbon sources of energy securely to under-served markets across the globe. Visit www.crownlng.com/investors for more information.

Forward-Looking Information and Statements

Certain statements in this announcement are not historical facts but are forward-looking statements. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “could,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan,” “should,” “would,” “plan,” “future,” “outlook,” “potential,” “project” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other performance metrics and projections of market opportunity. They involve known and unknown risks and uncertainties and are based on various assumptions, whether or not identified in this press release and on current expectations of Crown’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Crown. Some important factors that could cause actual results to differ materially from those in any forward-looking statements could include changes in domestic and foreign business, market, financial, political and legal conditions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

Crown LNG Contacts

Investors
Caldwell Bailey
ICR, Inc.
CrownLNGIR@icrinc.com

Media
Zach Gorin
ICR, Inc.
CrownLNGPR@icrinc.com

FAQ

What is the import capacity of Crown LNG's (CGBS) Kakinada terminal in India?

Crown LNG's Kakinada terminal has an approved total import capacity of 7.2 MMTPA.

When will Crown LNG (CGBS) begin gas delivery at its Kakinada terminal?

Crown LNG expects to deliver first gas at the Kakinada terminal in 2029, following a final investment decision in 2026.

What is the purpose of Crown LNG's (CGBS) MOU with India Gas Exchange?

The MOU establishes a framework for LNG cargoes through Crown's regasification terminal to be listed, marketed, and sold on the IGX platform, facilitating gas sales to pipeline customers.

How does Crown LNG's (CGBS) Kakinada project align with India's energy goals?

The project supports India's target of achieving a 15% gas-based economy by 2030, helping strengthen energy security and making natural gas more accessible across India.