The Hindu Business Line : GAIL in talks to buy Indonesian LNG for Dabhol

"We have had preliminary discussions with BPMIGAS of Indonesia on the issue of sourcing a part quantity of LNG from them," confirmed a GAIL spokesperson.

Restarting the 750-MW phase-one of the beleaguered Dabhol power project is being considered as one of the priorities for resolving the power crisis in Maharashtra.

GAIL is, however, apprehensive about delays in acquiring LNG from Pertamina.

"It is true that BPMIGAS has spare liquefaction capacity of 2.3 MTPA in the Bontang LNG liquefaction plant of Pertamina.

But this is because of under-utilised plant capacity as there are constraints in exploiting the upstream reserves linked to the plant," the GAIL official said.

Also, the new reserves are in deepwater. And currently deepwater drilling rigs are in short supply, which may lead to delays in production and sale of LNG.

Bontang LNG plant in East Kalimantan is operated by PT Badak NGL, a non-profit company owned by PT Pertamina (55 per cent), VICO Indonesia (20 per cent), Total E&P Indonesia (10 per cent), and Jilco (15 per cent).

The plant has eight LNG trains with an annual production capacity of 22.25 million tonnes.

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